As indicated by A, the KLCI had its intra-day low at 1548.30, but as it was supported by the 14-day EMA and rebounded to close at only 0.25 of a point lower. Resistance for the KLCI remains at 1566 while the support remain unchanged at the 14, 21, 31 EMA dynamic support and the L1 line.

As indicated by B, total market volume increased 11.1% but volume is still way below the 40-day Volume Moving Average. This shows that the market is still quiet and the inflow of fresh capital is still low. Technically, volume has to be above the 40-day Volume Moving Average, in order to help lift the market sentiment.

As indicated by C, the Stochastic is still below 70%, this shows that the Stochastic has not returned to the short term bullish territory. If the Stochastic could break above 70%, the market movement for the short term is expected to resume its bullish biased movement.

In conclusion, after being resisted by the 1566 last week, the KLCI retreated, but still, the technical outlook is still positive, for the KLCI is still above the 14, 21, 31 EMA as well as the L1 line.

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