On Monday, the KLCI retreated 6.16 points or 0.39%, but it is still staying above the 14, 21, 31 EMA dynamic support as well as the L1 uptrend line, this suggests that the uptrend of the KLCI is still intact. Immediate resistance for the KLCI is at 1600 psychological level.

As indicated by B, total market volume fell 12.1%, with volume below the Volume moving Average (40-day Volume Moving Average). This shows that the market is back into a quiet situation, where investors are reluctant to take up new positions. Generally, when the market is retreating, a lower volume is normal. But if the KLCI should rebound later, and attempt to resume its uptrend, more volume is definitely needed.

As indicated by C, the Stochastic stays above 70%, despite the retreat on Monday, and this shows that the short term movement of the KLCI remains bullish biased, until the Stochastic should break below 70%.

In conclusion, the KLCI is resisted by the 1600 psychological resistance, but the technical outlook remains positive. If the KLCI should break below the L1 uptrend line, or later form a Lower-High, it would be the early signs of weakness.

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