As indicated by A, the KLCI continue to test the 14, 21, 31 EMA dynamic on Thursday, losing 11.37 points or 0.77%, to close at 1465.47 points. Resistance for the KLCI remains at 1487 Fibonacci while the next support is at 1453 Fibonacci.

As indicated by B, total market volume fell 21.94%, with volume barely holding above the 40-day volume moving average. If volume should continue to fall and break below the 40-day volume moving average, it suggests that the market is back into in-active mood, thus the KLCI would be less likely to pickup its strength.

As indicated by C, the Stochastic fell below 50% on Thursday, but not yet breaking below 30%. Although it has not triggered any short term bearish signal for the KLCI, the short term movement is showing weakness for now.

In conclusion, the KLCI is still testing the short term uptrend dynamic support, and it is now at the borderline. Meanwhile, if market participation should continue to cool down, the KLCI (or the market in general) is likely to stay flat, with weakness.

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