As indicated by A, the FBM KLCI opened higher on Thursday, but it was still resisted by the 14, 21, 31 EMA dynamic resistance, and at the close of the day, gaining only 0.23 points. Support for the KLCI remains at 1480.

As indicated by B, total market volume fell 4.73%, with volume below the 40-day volume moving average. This suggests that the market is lightly participated as investors are not regaining their confidence about the local market. Meanwhile, amid low market participation and inflow of fresh capital, the market in a whole is less likely to regain its strength.

As indicated by C, the Stochastic breaks above 70% by margin on Thursday, entering the short term bullish territory. However, this signal is yet to be confirmed as the KLCI is still precisely resisted by the dynamic resistance.

In conclusion, the technical outlook for the KLCI remains bearish biased for now. There is a chance of the KLCI forming a Lower-High, and if the KLCI should really form a Lower-High, the risk of the KLCI returning to its downtrend is higher.

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