As indicated by A, the KLCI was supported by the 31-day EMA on Tuesday, gaining 2.63 points or 0.2%. This shows that the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI while the resistance stays at 1566.

As indicated by B, total market volume gained 0.7%, but still below the 40-day Volume Moving Average. This suggests that the market participation is still low, and investors are still not feeling confident about the local market. In short, without sufficient inflow of fresh capital, the KLCI or the market as a whole is less likely to pick up any strength.

As indicated by C, the Stochastic rebounded slightly, but still below 30%, thus the short term bearish biased signal remains intact. This suggests that the short term movement of the KLCI is likely to be weak.

In conclusion, the technical outlook for the KLCI is still positive, despite the short term weakening signal from the Stochastic, this is because, the KLCI is still staying above the L1 line as well as the 14, 21, 31 EMA dynamic support. But still, the KLCI has not successfully resume its uptrend because it has not broken above the 1566 resistance, and not to mention the market participation is still insufficient.

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