As indicated by A, the KLCI failed to break above the 14, 21, 31 EMA, which is still serving as the dynamic resistance to the KLCI. The KLCI ended 3.16 points or 0.2% lower on Tuesday. Support for the KLCI remains at 1540 level.

As indicated by B, total market volume fell 10.4%, with volume back to the 40-day volume moving average level. If volume should break below the 40-day volume moving average again, it suggests that the market is back to its quietness.

As indicated by C, the Stochastic did not break above 70%, and therefore, no short term bullish signal yet for the KLCI. On the other hand, if the Stochastic should fall back below 30%, it would be a short term bearish signal for the KLCI.

In short, despite the rebound after finding a temporary support at 1540, the technical outlook for the KLCI remains weak, as it is still resisted by the 14, 21, 31 EMA. However, the KLCI is not yet forming a downtrend. If the KLCI should break below 1540, the next support is at 1500 mark.

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