As indicated by A, the FBM KLCI rebounded on Tuesday, while testing the 14, 21, 31 EMA. However, the KLCI failed to break above the 14, 21 ,31 EMA, gaining 3.96 points or 0.26% for the day.

Meanwhile, as illustrated by the L1 line, the KLCI technical outlook is still showing weakness, and the support is at 1513 WinChart Automatic Fibonacci Retracement, while the resistance is at 1537 other than the L1 line.

As indicated B, total market volume increased 18.4%, but still below the 40-day Volume Moving Average. This shows that the market participation is still low, as investors are still not feeling confident about the local market. Lower volume suggests that the inflow of fresh capital is also low, thus not able to offset the selling pressure.

As indicated by C, the Stochastic is still rising, after breaking 30%, and this suggests a technical rebound signal for the KLCI. If the Stochastic could break above 70%, it would be a short term bullish biased signal for the KLCI.

In conclusion, the KLCI movement is still showing some weakness, until the KLCI could break above the L1 line. However, the KLCI has not formed a downtrend.

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