(M) Sdn Bhd 

On Monday, the Composite Index ended marginally lower, easing 1.29 points to 925.18 points. As shown on the chart above, resistance for the KLCI remained at the 931 level while the support is now at the 14days Moving average line, as well as the T2 dynamic support. (Study A)

Multiple moving averages are still rising but the ascending degree has reduced. As a result, outlook for the KLCI is turning cautious. Nonetheless, With the KLCI remained in the up trend channel (T1 and T2), there is no signal of a trend reversal yet.

Total market volume on Monday gained 12.6%, stood at 872 million shares. This indicates that the market activities is still active. Still, the sustainability of volume above the 40 days VMA is the most important aspect to the outlook of KLCI. (Study B)

%K of Stochastic has dropped below the 70% level again, signaled an end to the short-term bullishness of the KLCI. This is an early signal suggesting the short-term bullish sentiment is over. However, it is usually confirmed by the %D line, which is still situated above the 70% level. Nevertheless, market sentiment for the short-term would turn to neutral if the %K remains in the neutral region (30%-70%). (Study C)

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