As indicated by A, the KLCI was testing the 1480 support on Monday, breaking marginally below the 1480 to close at 1472.16 points, losing 11.82 points or 0.8%. The bearish break out below 1480 support is not yet confirmed for this is rather too closed to call. However, the 14, 21, 31 EMA is still serving as the dynamic resistance.

As indicated by B, total market volume fell 10.95%, with volume below the 40-day volume moving average. This suggests that the market is still quiet as investors are reluctant to take up new position amid uncertainty in global markets performance. Generally, if market should stay quiet, it is less likely for stocks to pick up their strength.

As indicated by C, the Stochastic is still falling, not able to break above 70%, and thus not showing any bullish signal yet. On the other hand, if the Stochastic should continue to fall and break below 30%, it would be entering a short term bearish territory, suggesting a short term weakness for the KLCI.

In conclusion, despite the KLCI bearish breakout below 1480 support is not yet confirmed, the technical outlook for the KLCI remains weak as the KLCI is still staying below the 14, 21, 31 EMA dynamic resistance. The KLCI would have to break above the 14, 21 ,31 EMA, then only it could stay away from the bearish biased movement.

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