As indicated by A, the KLCI had its intra-day high reaching 1537.66 points after the rebound on Tuesday. However, due to profit taking in some heavy weighted KLCI component counters in the after-noon trading session, the KLCI failed to sustain some of its gain, closing only 1.45 points or 0.1% higher at 1533.57 points. Resistance for the KLCI remains at 1552.34 WinChart Automatic Fibonacci Retracement followed by its recent high of 1566, while the support is at 1525.40 and 1513.35 WinChart Automatic Fibonacci Retracement.

Despite closing higher on Wednesday, total market volume fell 5.5%, and still staying below the 40-day Volume Moving Average, as indicated by B. This suggests that the market is still lightly participated, as investors are still not feeling confident about the local market.

As circled at C, the Stochastic ended slightly lower, but it has not broken below 30%, thus not yet showing a short term bearish biased signal for the KLCI.

In conclusion, the KLCI remains trendless right now, not yet forming a downtrend, on the contrary, no sign of an uptrend formation neither, not until the KLCI forms a higher-low or breaking above its recent new high. Not to mention that the lack of volume is a major setback.

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