On Thursday, the FBMKLCI was mostly traded in a narrow range, with the exception of a rally after 4pm, which pushed the FBMKLCI up to 1650.85 points. However, at the close, the FBMKLCI only managed to secure a gain of 0.53 of a point, closing at 1646.11 points. Resistance for the FBMKLCI remains at 1655 while the support is the 14, 21, 31 EMA, as indicated by A.
As indicated by B, total market volume increased 8.9%, with volume above the 40-day Volume Moving Average. But due to the strong profit taking activities, losers outnumbered gainers by 453 to 280, the higher volume may actually imply stronger selling pressure.
As indicated by C, the MACD histogram is still falling, suggesting that the short-term movement of the FBMKLCI is still losing strength. The weakening short-term movement is expected to continue until the MACD histogram should form a Rounding Bottom.
In conclusion, the FBMKLCI is still consolidating, while testing its dynamic support of the 14, 21, 31 EMA. Technically, the uptrend is still intact, but if profit is still strong, it would have a negative impact to the sustainability of the uptrend.
如图中C圈所示，平均乖离振荡指标（MACD Histogram）继续的下滑，这表示综指短期的走势还是稍微偏弱的，直到平均乖离振荡指标形成圆底（Rounding Bottom）为止。