As indicated by A, the FBM KLCI opened higher on Monday, and had its intraday high reaching 1582.29 points, gaining up to 11.63 points. However, due to profit taking activities, the KLCI only managed to close at 1578.41 points, gaining 7.79 points or 0.5%. The KLCI broke above the L1 downtrend line, and this suggests that the KLCI is breaking away from its short-term downtrend. However, this break out signal was not confirmed, as volume was still thin.The 14, 21, 31 EMA is now the dynamic support to the KLCI, and the immediate support for the KLCI is at 1535.

As indicated by B, total market volume increased 27.05%, but about 10% of the total market volume was from the debut trading of Gas Malaysia Berhad. Nevertheless, total market volume remains below the 40-day Volume Moving Average, and this suggests that the market participation is still below the ideal level.

As indicated by C, the MACD histogram is still falling, and this suggests that the KLCI is still in its consolidation phase.

In conclusion, the KLCI was lifted by the sharp rebound of the regional markets, and breaks above the L1 line. However, the break out signal was weak as it was not supported by strong volume. Nevertheless, even if the KLCI could not resume its previous uptrend yet, breaking away from its short-term downtrend is still a positive note, as the KLCI could consolidate further while continue to avoid its downtrend formation.