The KLCI retreated 3.48 points or 0.23% on Tuesday, and now testing the 14, 21, 31 EMA again. This shows that the KLCI has not been able to regain its strength since breaking above the 14, 21, 31 EMA recently.

As indicated by A, if the KLCI should break below the 14, 21 ,31 EMA, the KLCI would resume its sideways consolidation. Meanwhile, the Bollinger Bands contracted 6%, and this suggests that the KLCI is likely to return to its consolidation. Support for the KLCI is at 1526 WinChart Automatic Fibonacci Retracement while the resistance is at 1538 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume remains below the 40-day Volume Moving Average. Therefore, the KLCI is lacking one of its major element, in order to regain its strength. The lower volume suggests that the inflow of fresh capital is also low.

As indicated by C, the Stochastic breaks below 70% by margin, and this suggests that the short term bullishness of the KLCI has ended. If the Stochastic should break below 30%, it would be a short term bearish biased signal for the KLCI.

In short, the KLCI failed to regain its strength, with the volume below the 40-day Volume Moving Average. However, this does not mean that the KLCI is turning bearish, for the KLCI is likely to stay in its sideways consolidation.

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