On Monday, the KLCI retested the 1285 resistance level. However, it fail to break above this resistance level. Also, as indicated by A, the 14, 21, 31 EMA remains as the dynamic resistance to the KLCI, and therefore, if the KLCI should remains below the falling dynamic resistance, the outlook for the KLCI shall remains bearish biased.

Total market volume increased 5%, however, it is still staying below the 40-day VMA level, suggesting that the market participation is still low. Therefore, without sufficient market participation which is an indication of fresh capital inflow, the KLCI is less likely to regain its strength. (Study B)

As circled at C, the MACD histogram has not formed a rounding top yet, and suggesting that the MACD bullish signal is still gaining strength. If the MACD histogram should form a rounding top, it would suggest a weakening of the MACD bullish signal.

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