As indicated by A, the FBMKLCI opened higher on Monday, but it failed to catch up its early gains, ended the day 5.85 points or 0.4% lower. However, with the KLCI above the L1 line, the technical outlook is still on the positive side.

Meanwhile, with the KLCI above the 14, 21, 31 EMA, it suggests that the technical outlook is still positive. Resistance for the KLCI is at 1552.74 WinChart Automatic Fibonacci Retracement followed by 1566. Support is at 1537.77 followed by 1525.67 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume fell 28.1%, with volume obviously below the 40-day Volume Moving Average. This again suggests that the market is lightly participated, and investors are not feeling confident about the local market.

As indicated by C, the Stochastic fell sharply on Monday and now testing 70%. If the Stochastic should break below 70%, it means that the short term bullish signal has ended, but it does not mean a short term bearish signal, not until the Stochastic should fall below 30%.

In conclusion, with the KLCI still above the L1 line, the technical outlook remains positive. However, we shall remind readers that the L1 line is not yet an uptrend line, for the KLCI has only formed a higher-low, not yet breaking its new high. Even if the KLCI should break its new high, if volume should remains unconvincing, the signal would be less significant.

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