As indicated by A, the FBM KLCI retreated 2.44 points or 0.17% on Friday near 1453 resistance, after rising for a few days. The 1453 resistance is the 50% Fibonacci Retracement line, which is calculated based on the high of 1597.08 and the low of 1310.5. Support for the KLCI is at 1400.

As indicated by B, total market volume fell 28.67%, but still above the stay above the 40-day volume moving average. This suggests that the market overall is still active. Since the KLCI is retreating, the lower volume actually suggests that there are no signs of panic selling for now.

As indicated by C, the Stochastic retreated slightly, but still above the stay above 70%, in the short term bullish territory. This suggests that the short term movement of the KLCI is still positive.

In conclusion, the KLCI breaks above the 14, 21, 31 EMA, and it is temporary breaking away from its downtrend. However, the KLCI is not likely to form an uptrend immediately, for it will usually take some times. For now, the best scenario for the KLCI is to consolidate in Triangle or Rectangular patterns, for this would neutralize the selling pressure of the market. After the consolidation, and if the KLCI should show signs of higher-lows and breaking new high, it would be the signal for an uptrend formation.

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