As indicated by A, the KLCI failed to continue its rising momentum on Monday, ended 4.47 points or 0.3%. Resistance for the KLCI remains at 1552.34 WinChart Automatic Fibonacci Retracement followed by the 1566 recent high, while the support is at 1525.4 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume fell 31.2%, and as a result, volume is still below the 40-day Volume Moving Average. This suggests that investors are still not feeling confident about the local market, and the low inflow of fresh capital is not likely to push the KLCI or the market in general higher.

As circled at C, the Stochastic stays above 70% despite the losses of the KLCI on Monday. This suggests that the short term movement of the KLCI is still on the positive side, until the Stochastic should break below 70%.

In conclusion, with the KLCI above the L1 and the 14, 21, 31 EMA, the technical outlook is on the positive side. However, the major set back is still the lack of volume. Nevertheless, the KLCI is still trendless now, until if should either form a Higher-Low or a Lower-High.

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