As indicated by A, the KLCI fell 2.99 points or 0.2% on Friday, closing at 1541.03 points. Resistance for the KLCI is still at 1552.74 followed by the recent high of 1566; while the support is at 1525.57 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume fell 2.4%, and as a result, the volume is still below the 40-day Volume Moving Average. This shows that the market participation is still low and the low inflow of fresh capital is suggesting that investors are not feeling confidence about the local market.

As circled at C, the Stochastic stays above 70%, in the short term bullish territory. This suggests that the short term movement of the KLCI is still positive, until the Stochastic should fall below 70%.

In short, despite the short term positive biased movement, the KLCI has not formed an uptrend. Not only that the KLCI has not formed a higher-low or breaking its recent new high, the major set back of the KLCI in forming an uptrend is the lack of volume.

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