As indicated by A, the KLCI break below 1089 support line, and therefore, the KLCI failed to form a double bottom. In other words, if the KLCI should not return to above the 1089 level in the near term, the KLCI is unlikely to form a double bottom again. Support for the KLCI is now at 1035 WinChart Automatic Fibonacci Retracement while the resistance is at 1128 WinChart Automatic Fibonacci Retracement.

As shown on the chart, both the T1 as well as the Bollinger Middle Band will be serving as the dynamic resistance for the KLCI. In short, provided that the KLCI is still below the dynamic resistance, the outlook for the KLCI is still bearish biased.

As indicated by B, total market volume increased 3.4%, but failed to break above the 40-day VMA level, therefore, this suggests that the overall market participation is still weak, and the KLCI is unlikely to regain its strength.

As circled at C, the Stochastic is still staying below the 10% level, which suggests that the KLCI is still over-sold. Nonetheless, if the Stochastic should rebound and breaking above the 30% level, it would be a signal suggesting a technical rebound for the KLCI.

In conclusion, the KLCI break below the T1 as well as the 1089 support level which further dampen the market sentiment, unless the KLCI should technical rebound and return to above the 1089 level, the bearish biased view remains intact. 

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