As indicated by A, the FBMKLCI rebounded and tested the 14, 21, 31 EMA on Monday, gaining 5.98 points or 0.39%. However, the KLCI failed to break above the 14, 21, 31 EMA, but managed to stay above 1525, thus the 1525 and the 1513 WinChart Automatic Fibonacci Retracement are the support for the KLCI while the resistance is at 1537 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume increased 12.81%, but volume stays below the 40-day Volume Moving Average. This means that the market, overall, is still lightly participated, thus the KLCI is less likely to regain its strength.

As circled at C, the the Stochastic stays below 30%, in the short term bearish territory. This suggests that the short term movement of the KLCI is still weak, until the Stochastic could successfully break above 30%.

In conclusion, since the retreat last week, the KLCI is staying in a sideways movement, with short term bearish biased. However, the long term uptrend of the KLCI remains unaffected, as the KLCI weekly chart is still staying firmly above the 14, 21, 31 weekly EMA. Nevertheless, if the KLCI should turn weaker, it would form a lower-high.

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