Despite having its daily low touching 1572.95 points, the KLCI managed to close at 1584.32 points, losing only 3.74 points or 0.24% on Friday. Basically, the KLCI is still consolidating in its sideways manner. But, as indicated by A, if the KLCI should begin to fall, it would be forming lower-highs. Support for the KLCI is at 1566 – 1570 while the resistance is at 1600-1609.33 points.
As indicated by B, total market volume fell 20.43% on Friday, with volume below the 40-day Volume Moving Average. In short, the market is still quiet amid the lack of positive factors. Meanwhile, with losers more than double of gainers, it suggests that profit taking is still dominating on Friday.
As indicated by C, the Stochastic stays above 70%, suggesting that there is still no sign of any short-term weakness. Nevertheless, if the Stochastic should break below 30%, it would be a signal suggesting the KLCI entering a short-term bearish movement.
Although still unclear, the KLCI could be forming lower-highs, as illustrated by the dotted line. If the KLCI should start falling and breaks below the 1566-1570 support, it would have fulfilled the characteristic of a downtrend formation.
HAPPY TRENDING & GOODLUCK