On Thursday, the KLCI rebounded, breaking above the 1625 level to close at 1627.84 points, gaining 8.54 points. As indicated by A, the KLCI is now testing the 14, 21, 31 EMA dynamic resistance. Since the KLCI is only breaking above 1625 by margin, we shall not take the 1625 as the current support for the KLCI, while the 1600 is still an important support for the KLCI.

Despite the KLCI is gaining over 8 points, total market volume fell 17.77%, with volume remains below the 40-day Volume Moving Average, suggesting that the market is still very quiet, as investors are being cautious while reluctant to take up new positions.

As circled at C, the Stochastic rebounded a little, but remains in the neutral region (30% ~ 70%). This suggests that the KLCI is still consolidating while the direction is still unclear.

In conclusion, ever since rebounding from 1600 on Monday, the KLCI has risen 3 days, and coming to test the 14, 21, 31 EMA dynamic resistance. If the KLCI should be resisted by the 14, 21, 31 EMA and starts falling, it would be forming lower-highs, thus suggesting some short-term weakness. However, this does not mean that the KLCI is forming a downtrend.