As shown the chart above, the KLCI fell 10.31 points to close at 1545.88 points, due to last Friday's losses of the US market. As indicated by A, the KLCI is now testing the 14, 21, 31 EMA dynamic support, while the resistance is still at 1566.

As indicated by B, total market volume remain below the 40-day Volume Moving Average, and this shows that the market participation is still low, as investors are not feeling confident about the local market. In short, the KLCI is less likely to regain its strength without sufficient market participation.

As indicated by C, the Stochastic fell below 30%, entering the short term bearish territory. Technically, if the Stochastic should remain below 30%, the short term movement of the KLCI is expected to be weak.

In conclusion, despite falling over 10 points, the technical outlook for the KLCI remains positive, unless the KLCI should fall below 14, 21, 31 EMA or the L1 ascending line. Unless, the KLCI should form a lower-High, then it would be showing some sign of weakness.

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