As indicated by A, the KLCI failed to break above the 1566 resistance, ended 4.16 points or 0.27 % lower to close at 1563.19 points on Thursday. Supports for the KLCI remains at 14, 21, 31 EMA as well as the L1 line.

As indicated by B, total market volume increased 3.37%, at around the 40-day Volume Moving Average. Still, the market participation as a whole is still low, and the market sentiment is still not much improving, as investors are not feeling confident about the local market.

Despite the low volume, the Stochastic stays above 70%, in the short term bullish territory. This suggests that the KLCI short term movement is still positive. Refer to C.

In short, although the KLCI has not successfully broken above the 1566 resistance, the technical outlook for the KLCI remains positive. Currently, the major set back to KLCI is its attempt to extend its uptrend is the cautious condition of regional market, and also the low market participation of the local front.

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