As indicated by A, the KLCI had its intra-day high reaching 1510.54 points, breaking above the 1500 mark. However, when touching the 14, 21, 31 EMA dynamic resistance, the KLCI started falling, and ended the trading day with a loss of 1.50 points or 0.1%. This suggests that the 14, 21, 31 EMA is still the dynamic resistance for the KLCI, while the support remains at 1480.

As indicated by B, total market volume increased 20.61%, but since the KLCI is still resisted by the dynamic resistance, the increased of volume failed to suggests an increased of investors's confidence, but rather, implying some higher profit taking activities.

As indicated by C, the Stochastic is still rising, rather gradually, but it has not broken above 70%, thus not able to suggest any short term bullish signal for the KLCI.

In conclusion, after some massive sell down in the previous week, the KLCI had a technical rebound last week, and earlier this week. Now that the KLCI is testing the dynamic resistance, and possibly forming a Lower-High, it suggests that the technical outlook for the KLCI is still weak. If the KLCI should form a Lower-High, it would have shown the complete characteristic of a downtrend formation.

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