As indicated by A, the KLCI remains in the congestion zone of the 14, 21, 31 EMA dynamic resistance, and therefore, the outlook for the KLCI remains uncertain, with some bearish biased. Also, the 1285 level remains the resistance level to the KLCI.

Total market volume increase another 11.4% on Tuesday, but it is still below the 40-day VMA level. Therefore, the overall market participation is still relatively insufficient. In addition, the lower volume also implies a lower inflow of fresh capital into the market, and therefore, if the volume should remains below the 40-day VMA level, the sentiment for the KLCI shall remains weak.

As circled at C, the MACD histogram is about to form a rounding top. If the the MACD histogram forms a rounding top, it would suggest a weakening of the MACD bullish signal. Meanwhile, the MACD line remains below the zero level, suggesting that the KLCI long term movement is still bearish biased.

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