As indicated by A, the KLCI downtrend channel remains intact, and therefore, the outlook for the KLCI remains bearish biased. As shown on the chart, the KLCI support is still seen at 1157 WinChart Automatic Fibonacci Retracement line, and the resistance is at 1192 WinChart Automatic Fibonacci Retracement line. Nevertheless, the T1 is still the dynamic resistance for the KLCI.

It is important to mention that the 200-MA still a major indicator to define a bull or a bear market. Currently, the KLCI remains below the 200-MA as well as the 1330 points resistance line, and therefore, the current KLCI sentiment is still considered as bearish, and any rally below the 200-MA would only regarded as a technical rebound.

As indicated by B, total market volume declined another 8.2% on Tuesday, and the volume remains below the 40-day VMA level. Therefore, this is still showing that our market participation is indeed quiet, as many investors are still staying on the sidelines with a wait-and-see mentality, therefore, the KLCI is likely to remains weak.

As circled at C, the Stochastic remains below the 30% level, which is the short term bearish region, and the market movement for the short term is still bearish biased. If the Stochastic should break above the 30% level, it would be a signal suggesting a technical rebound for the KLCI.

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