Despite opening higher on Wednesday, the KLCI failed to sustain its early gain as investors were rushing to cash out their positions, as a result, the KLCI loss 1.19 points, to close at 1248.94 points, breaking below the 1254 level again, as indicated by A. Therefore, 1254 is now the resistance again while the support is at 1224 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the KLCI remains below 200-day MA, which suggesting that the KLCI long term movement is getting weaker, while moving towards a bear market.

As indicated by B, total market volume declined 1.2%, while still above the 40-day VMA level. This suggests that the bargain buying is still active. If the KLCI should rebound with volume above the 40-day VMA level, it would help lift the market sentiment a little.

As indicated by C, the Stochastic remains below 10%, suggesting that the short term movement of the KLCI is indeed weak. Until the Stochastic could break above 30%, the short term movement of the KLCI remains in place.

In conclusion, the KLCI is now below the 200-day MA for 2 days, and if the KLCI should fail to return to above 200-day MA, the risk of entering a bear market is higher.

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