Despite the US market was closing lower last Friday, the KLCI only retreated mildly on Monday, while still standing firmly above the 14, 21, 31 EMA as well as the L1 line. (Study A). This suggests that the technical outlook for the KLCI remains positive.

As indicated by B, total market volume fell 26.77%, with volume below the 40-day Volume Moving Average. This suggests that the market participation is still low, as investors are not feeling confident about the local market. Generally, the KLCI or the market as a whole is less likely to pick up its strength without sufficient inflow of fresh capital.

As indicated by C, the Stochastic stays above 70%, in the short term bullish territory. This suggests that the short term movement of the KLCI is still positive.

In conclusion, the technical outlook for the KLCI remains positive, but with limited upside room for the KLCI is still capped under 1566 resistance. To break above this resistance, market volume is needed, and the next resistance is at the historical high of 1576.95.

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