As indicated by A, the KLCI opened higher on Friday, but still could not break above the L1 line, and as the same time, resisted by the 14, 21, 31 EMA. The KLCI fell 0.75 of a point. Resistance for the KLCI remains at 1600 level while the support is at 1551Fibonacci retracement line.

As indicated by B, total market volume fell 2.8%, but still able to stay above the volume moving average. With market volume showing some improvement, it is likely that the market sentiment will be lifted by the higher participation.

As indicated by C, the Stochastic failed to break above 30%, and at the moment, the Stochastic is still showing a short term bearish signal for the KLCI.

I conclusion, the KLCI short term is showing some weakness, but it has not formed a downtrend yet, not until the KLCI should form a Lower-High. With the market volume gradually improving, coupled with the rebound of regional markets, the KLCI and the market as a whole is likely to benefit from this positive movement.

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