Judging from the chart scenario, it seems the KLCI might heading towards south due to some political situation (2.6 Billion donation) with the suspension of UMNO deputy president and the weakness in the world equities markets.
Last week the KLCI cannot even move much after reaching their 200 days moving average. If we examine most of the equities listed, they are not moving much after they stage a technical rebound for the past few weeks and at these moments they show more bearishness rather than bullish move.
Right now the MACD Histogram is showing sign of RED color, indicate that the market is weak. Hence a careful approach is needed because I'm expecting the KLCI might be moving side way and move further towards 1,600 points.
