As indicated by A, the FBM KLCI ended lower on Thursday, and precisely testing the 1525 WinChart Automatic Fibonacci Retracement support. At the close, the KLCI fell 9.79 points. Since the KLCI has not been able to return to above the 14, 21, 31 EMA, the technical outlook for the KLCI is turning weaker. Resistance for the KLCI is at 1537 while the support is seen at 1513 WinChart Automatic Fibonacci Retracement.

Meanwhile, as indicated by B, total market volume fell 17.71%, and as a result, volume remain below the 40-day Volume Moving Average, and this suggests that the market is quiet, and the inflow of fresh capital is low. In short, if volume should stay low, the market is less likely to pick up some strength.

As circled at C, the Stochastic breaks below 30% again, entering the short term territory, and this suggests that the KLCI short term movement is likely to remain weak.

In conclusion, the short term technical view of the KLCI is on the lower side right now, but as for the mid to longer term picture, it is still too early to tell.

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