Despite over-night losses of the US market, the KLCI only fell 1.95 points. As indicated by A, the KLCI was still supported by the 14, 21, 31 EMA dynamic support as well as the L1 ascending line. This shows that the technical outlook for the KLCI is still positive, with the resistance at 1566.

As indicated by B, total market volume fell 8.3%, and as a result, volume remains below the 40-day Volume Moving Average. This suggests that the local market is still quiet, and in short, without sufficient participation, the market is less likely to pickup any strength. As indicated by C, the Stochastic failed to break above 70%, thus not yet entering the short term bullish territory. For now, the short term movement of the KLCI remains at neutral.

In conclusion, the positive technical outlook for the KLCI remains intact, but KLCI is not yet extending its uptrend, for it has yet to take out the 1566 resistance. More importantly, market volume is still low, and this is going to be a major set back to any attempt of the KLCI is breaking the resistance.

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