On Tuesday, the KLCI continues its sideways consolidation, gaining 4.02 points or 0.26% to close at 1577.62 points. As indicated by A, the KLCI is still supported by the 14, 21, 31 EMA dynamic support and the uptrend is still intact. Resistance stays at 1597.08 or the 1600 level.
As indicated by B, total market volume increased 18.53%, with volume breaking above the 40-day Volume MovingAverage.
Technically, this suggests that the market participation is not at a 'sufficient' level. However, the most of the actively participated counters are still low-priced stocks or their warrants, and coupled with higher numbers of losers over gainers (431 to 314), the increased of volume might not be able to reflect the improvement of investors confidence.
As indicated by C, the Stochastic is still rising, after breaking above 30%. Technically, if the Stochastic should break above 70%, it would be entering the short-term bullish territory, thus suggesting a short-term positive signal for the KLCI.
In conclusion, the uptrend for the KLCI remains intact, while the KLCI consolidation continues. If the KLCI could form higher-lows after being supported by the 14, 21, 31 EMA, the uptrend is likely to extend further. Of course, this bullish signal must be accompanied by strong volume.