As indicated by A, the KLCI retreated 0.5 of a point or 0.03%, to close at 1581.85 point. The 14, 21, 31 EMA is still serving as the dynamic support to the KLCI while the L1 uptrend line remains intact. This suggests that the KLCI is still trending up.

As indicated by B, total market volume was unchanged, and still staying below the 40-day Volume Moving Average. This suggests that the market participation is still low, as investors are staying at the sidelines. The lower market volume also implies that investors are not feeling confident about the local market.

As indicated by C, the Stochastic is still falling on Tuesday, but it has not broken below 70%. This suggests that the short term bullish biased signal is still intact. If the Stochastic should fall below 70%, it would be a signal suggesting a beginning of a technical correction.

In conclusion, the technical outlook for the KLCI remains positive for now, as it is still supported by the 14, 21, 31 EMA as well as the L1 uptrend line. However, whether or not the KLCI could sustain this uptrend, the major factor lies in the trading volume, as rally with thin volume usually does not last.

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