As indicated by A, the KLCI had an intra-day low reaching 1514.94 points, but as the KLCI was approaching the 1513 WinChart Automatic Fibonacci Retracement, it started to rebound, and at the close, losing only 6.39 points or 0.42%, to close at 1521.53 points. Resistance for the KLCI remains at 1525 WinChart Automatic Fibonacci Retracement as well as the 14, 21, 31 EMA dynamic resistance.

As indicated by B, total market volume gained 0.76%, while still staying below the 40-day Volume Moving Average. This again shows that the market participation is low, thus implying that investors confidence is relatively lower. In other words, the KLCI is less likely to pick up its strength without strong volume.

As circled at C, the Stochastic stays below 30%, in the short term bearish territory. This suggests that the market movement for the short term is expected to be weak, until the Stochastic could successfully break above 30%.

In conclusion, short term weakness for the KLCI remains intact, but the KLCI has not formed any downtrend. The ideal situation for the KLCI would be to consolidate in a sideways manner, above 1480~1500 level, and hopefully later when investors regain their confidence over the local market, and the KLCI or the market would avoid the downtrend formation.

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