On Friday, the KLCI had its rally up to 8.06 points, but soon the early gain was gradually eroded by profit takings, and at the close, the KLCI fell 1.89 points to 1623.70 points. As indicated by A, the KLCI is still testing the support level around 1625 while the next support is still at 1600 psychological level. Resistance stays at 1655.

As indicated by B, total market volume increased 19.57%, with 1,075,315,900 shares traded. However, nearly 22% of the daily traded volume came from the debut active trading of IGB Reit. Nevertheless, despite the increased of volume, volume is still unable to hit the 40-day Volume Moving Average, suggesting that the market as a whole is relatively quiet.

As circled at C, although the Stochastic has fallen below 70%, it has not broken below 30%, thus not yet showing any short-term bearish signal. For now, the Stochastic is at its neutral region, suggesting that the KLCI short-term is still in consolidation.

In conclusion, even though the KLCI has fallen after failing to break above its 1655 resistance, the KLCI has not formed a downtrend, for it has not broken below the critical 1600 level. As mentioned in earlier analysis, the KLCI could just extend its consolidation.