As indicated by A, the FBM KLCI had its intra-day breaking below the 1525 level. However, it started to regain its strength in the afternoon session, gaining 9.67 points or 0.63% to close at 1535.59 points. Resistance for the KLCI are found at 1537 and 1552 WinChart Automatic Fibonacci Retracement; while the supports are found at 1525 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume increased 7.8%, but it has not broken above the 40-day Volume Moving Average yet. Technically, this suggests that the market is still quiet, thus the KLCI or the market as a whole is not likely to regain its strength significantly.

As indicated by C, the Stochastic rebounded strongly on Wednesday, breaking above 30%, leaving the short term bearish territory. If the Stochastic should rebound and return to above 70%, it would be a short term bullish signal for the KLCI. If the Stochastic should stay around 50%, the KLCI short term movement is expected to stay in narrow sideways movement.

After falling sharply on Monday and Tuesday, the KLCI rebounded strongly on Wednesday. Basically, the KLCI has not formed any reversal, and the technical picture has not changed much. If the KLCI could rebound further, and return to above the 14, 21, 31 EMA, it would, of course, improve the technical outlook. But if the KLCI should failed to break its recent high of 1560, and instead, starts falling again at a lower-high, it would be an early weakness signal.

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