The KLCI opened last Monday at 874.34 and made a daily high at 875.51, which was also the weekly high. With a weekly low at 859.81, the KLCI closed on Friday at 875.51. For the week, the KLCI gave up 11.90 points or 1.4%. Volume for week ended 8th of April stood at 1,891,893,000 shares.

The KLCI remained in the down trend channel (T1 and T2). In addition, the KLCI broke below the important 200 days moving average line (Arrow A). In order to regain ground, it must rebound and close above the 200 days moving average line within a short period, other wise, we shall see more down side movement. 

Bollinger Band

Last week’s Bollinger Band width contracted and widen again. Nevertheless, the KLCI candles are below the Bollinger Band’s Middle Band, thus showing sign of weakness.

Technical Indicators

Volume

As shown in Arrow B, last week’s KLCI volume remained below the 40 days Volume Moving Average (VMA), suggesting a lack of interests. In order to break away from this dull market, volume has to break above 40 days VMA.

MACD

MACD line remained below the zero level since 7^th of February. This indicates that the KLCI is still weak.

RSI

RSI broke below 30% on the 30^th of March (circle C) and remained below 30% since. Currently RSI is situated in the mid-term bearish zone in which the performance of KLCI is expected to be weak until RSI break above 30%, which we would probably see the KLCI going side way.

STC

Like RSI, STC broke below 30% on the 30^th of March and remained below 30%. Currently STC indicates the KLCI is in a short-term bearish status. On the 6^th and 7^th of May, STC went below 10% (extremely over-sold), and therefore, we saw a technical rebound on Friday the 8^th of May. Nevertheless, KLCI remains weak at this moment.

In a nut shell

All primary and secondary indicators are in consensus indicating that the KLCI is remained and expected to be weak from short-term to mid-term. We might see a technical rebound at the lower trend channel (T2). Should the KLCI shows sign of reversal, we will observe the STC and RSI  to break above 50%, and MACD cross-over the trigger line. Needless to mention, the growth of volume above the 40 days VMA is imperative.

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