As indicated by A, the FBM KLCI was trading at a narrow range on Tuesday, closing with a gain of 1.6 points or 0.1%. Basically, the positive technical outlook for the KLCI remains unchanged with its resistance staying at 1566 and the 14, 21, 31 EMA and L1 line still serving as the dynamic support.

As indicated by B, total market volume increased 12.14% on Tuesday, and breaking slightly above the 40-day Volume Moving Average. It may appears as though the market participation is getting better, but the fact is, it was mainly due to some counters which were falling sharply with huge volume, like MAA, INGENS, TIMECOM, to name a few. Therefore, the increased of volume on Tuesday does not really reflect any improvement of the market sentiment.

As indicated by C, the Stochastic stays above 70%, while suggesting that the market movement for the short term is still bullish biased.

In conclusion, despite having losers twice as much of winners on Tuesday, the KLCI technical outlook remains unchanged at positive. This suggests that the positive trends of stocks are very selective.

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