On Thursday, the KLCI opened gap up, due to the strong rebound of the US market. The KLCI had its intraday high reaching 1578.76 points but only managed to close at 1573.31 points, gaining 5.88 points or 0.33%. As indicated by A, the KLCI is still testing the L1 downtrend line.

As indicated by B, total market volume increased 11.42%, despite the most of the regional markets are rebounding. Total market volume remains below the 40-day Volume Moving Average, and this is still suggesting that investors are still being very cautious while not feeling confident about the local market.

As circled at C, the MACD histogram stopped falling, and might be forming Rounding Bottom. If the MACD histogram could continue rising, it suggests that the KLCI short term is picking up strength again.

Despite some technical indicators are showing short-term improving signal, total market volume remains low, and this has failed to support any bullish breakout of the KLCI. Nevertheless, as mentioned in earlier analysis, even if the KLCI could only break away from the L1 line, and extend its consolidation, possibly forming a rectangular pattern, and technically, this could help the KLCI to avoid the continuation of its downtrend.