The KLCI ended lower due to the loss of the US markets, the KLCI gapped down on Friday, and loss 18.43 points or 1.4%, to close at 1285.73 points. Support for the KLCI is now at 1272.33 while the resistance is at 1287.15 followed by 1302 WinChart Automatic Fibonacci Retracement.

The Bollinger Bands continue to expand, expanding 42%, while the KLCI remains below the Bollinger Middle Band, thus the immediate technical outlook remains bearish biased. If the KLCI should rebound, the Bollinger Middle Band is likely to be the first target.

As indicated by B, total market volume increased 15.8%, reaching the 40-day VMA level. This suggests some bargain buying, but also implied some stronger selling pressure.

As circled at C, the Stochastic remains below 30%, thus the short term movement of the KLCI is still on the bearish side, until the Stochastic could break above 30% level.

In conclusion, the KLCI is still affected by regional market performance, while the technical outlook remains weak. Generally, if the KLCI should break below the 200-day Moving Average, it would mark an end to the uptrend which started in March 2009.

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