As indicated by A, the FBM KLCI opened lower on Thursday, and had its intra-day low reaching 1454.52 points, with a loss of 26 points. However, it soon started to rebound, and gradually recovering its losses, and closed the day with only 4.06 points lower. The KLCI is now temporary consolidating around 1474~1480 while the resistance is at 1500.

As indicated by B, total market volume fell 28.7%, with volume above the 40-day volume moving average. The sharp decline of volume suggests the reduce of panic selling, but it does not mean that investors are now recovering their market confidence. Generally, if the KLCI should consolidate, market volume is expected to be lower.

As indicated by C, although the Stochastic has broken above 30%, it has not broken above 70%, and therefore, there is not short term bullish signal yet.

In conclusion, despite the chance of a consolidation or a technical rebound, the technical outlook for the KLCI remains weak as it is still staying below the falling 14, 21, 31 EMA dynamic resistance.

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