As shown on the chart, the KLCI remains in the downtrend channel; until the KLCI successfully breaking above the downtrend channel resistance (T1), the outlook for the KLCI remains bearish biased. As indicated by A, the KLCI formed a Doji candlestick, which is the mixed signal for the day, and suggesting a chance of a technical rebound.

As indicated by b, total market volume remains below the 40-day VMA level, suggesting that the market participation is still low, as investors are still staying on the side lines. In short, if the market volume should remain below the 40-day VMA level, the KLCI is less likely to regain its strength.

As circled at C, the Stochastic is still staying below the 30% level, which is the short term bearish region. Therefore, the market movement for the short term is still bearish biased; unless the Stochastic could successfully break out above the 30% level, it would be a sign of a technical rebound, and the KLCI would have a chance to regain some lost ground.

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