As indicated by A, the KLCI fell below the 1551 WinChart automatic Fibonacci retracement by margin on Friday, closing at 1548.81 points, ended 3.1 points or 0.2% for the day. The 14, 21, 31 EMA is still serving as the dynamic resistance to the KLCI while the next support for the KLCI is at 1536 WinChart automatic Fibonacci retracement.

As indicated by B, total market volume increased 4.19%, with volume above the 40-day volume moving average. Despite a stronger market participation, the numbers of losers still clearly outnumbered winners on Friday, and this implies that the selling pressure is still on the higher side.

As indicated by C, the Stochastic stays below 30%, in the short term bearish territory. This suggests that the short term movement of the KLCI is still weak.

In short, the technical outlook for the KLCI remains weak as long as it is still resisted by the 14, 21, 31 EMA dynamic resistance. However, despite the short term weakness, it is still too early to call for any bear market for now, unless the KLCI should fall below the 200-day MA, or breaking below the 1500 psychological mark.

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