On Friday, the KLCI gained 2.87 points or 0.19% to close at 1551.12 points. As indicated by A, the KLCI is about to test the 14, 21, 31 EMA dynamic resistance. Next resistance for the KLCI is at 1566-1570, while the support is at 1535.

Many counters rebounded on Friday, with 432 gainers over 266 losers. However, despite that, total market volume remains below the 40-day Volume Moving Average, as indicated by B, and this suggest that the market participation has not reached the ideal level.

As circled at C, the MACD histogram is still rising, thus the Rounding Bottom remains intact. This suggests that the KLCI short-term is picking up some strength amid technical rebound, and the improvement shall carry on until the MACD histogram should form a Rounding Top.

In conclusion, despite the short-term improvement, the KLCI downtrend remains intact. As mentioned in earlier analysis, if the KLCI could prolong its sideways consolidation, it would neutralize some selling pressure, thus temporary helping the KLCI from extending its downtrend.