As indicated by A, the FBM KLCI continues to rebound, leading by the over night gains of the US and the European markets. The KLCI gained 7.21 points or 0.49%, with the current support staying at 1474~1480 and the resistance at 1500.

As indicated by B, total market volume increased 5.76%, with volume above the 40-day volume moving average. This suggests that the market is actively participated. Although it is said that when volume is above the 40-day volume moving average the market sentiment is generally on the positive side, with the current technical rebound mood of the global market, we could not discount the reason for a higher volume due to short term trading or profit taking activities.

As indicated by C, the Stochastic is still rising, after breaking above the 30%. However, it has not broken above 50%, thus not yet showing any short term bullish signal for the KLCI.

In conclusion, the technical outlook for the KLCI remains weak as it is still staying below the 14, 21, 31 EMA dynamic resistance. If the KLCI should continue to rebound, but later resisted by the dynamic resistance, and begin to retreat again, it would be forming a lower-high.

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