Meanwhile, the 14, 21, 31 EMA is also serving as the dynamic resistance, and as long as the KLCI is still resisted by the 14, 21, 31 EMA, the technical outlook shall remain bearish biased.

As indicated by B, total market volume increased 18.16%. However, with 863 counters falling, the increased of volume actually suggests a stronger selling pressure, which will eventually dampen the market sentiment.

As indicated by C, the Stochastic fell below 30%, re-entering the short term bearish territory. This suggests that the short term movement of the KLCI is weak, and the weakening movement shall continue, until the Stochastic could break above 30%.

In conclusion, although the Stochastic is now touching 0%, which suggests an over-sold condition. However, despite the short-term over-sold condition, the market technical outlook is indeed not looking good. In short, the 14, 21, 31 EMA should give a better picture of how the KLCI is doing than other indicators for now.

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