As indicated by A, the KLCI continue to rebound on Thursday, after finding its support at the 14, 21, 31 EMA dynamic support. The KLCI gained 4.1 points or 0.26%, closing at 1601.27 points. The KLCI is now testing the 1600-1609.33 resistance.

As indicated by B, total market volume was almost unchanged (up 0.36%), while still below the 40-day Volume Moving Average. This shows that the market is indeed quiet, and still no signs of investors regaining their confidence about the market.

As indicated by C, the Stochastic is testing 70%, and if the Stochastic should break out and stay above 70%, it suggests that the short-term movement of the KLCI is turning positive.

If the KLCI is extending its sideways consolidation, the low market volume is still considered as normal. However, since the KLCI is testing its historical new high resistance, the thin volume that we are having now is really “insufficient” and unconvincing, if the KLCI should really break out above this resistance. Nonetheless, there are still no signs of bearish reversal for now.