As indicated by A, after resisted by 1566, the FBMKLCI retreated on Monday, losing 7.71 points or 0.49%. However, it is still above the 14, 21, 31 EMA dynamic support as well as the L1 ascending line. Therefore, this suggests that the technical outlook for the KLCI is still positive.

As indicated by B, total market volume increased 9.17% on Monday, but still below the 40-day Volume Moving Average. This shows that the market is still very quiet, as investor are reluctant to take up new positions, amid lower market confidence.

As indicated by C, the Stochastic breaks below 70% by margin on Monday. If the Stochastic should stay below 70%, it means that the short term bullish biased signal has ended. However, the Stochastic is not yet showing any bearish biased signal, not until the Stochastic should break below 30%.

In conclusion, with the KLCI still above the L1 and 14, 21, 31 EMA, the positive technical outlook remains intact. However, volume is still a major concern if the KLCI could take out the 1566 resistance.

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