As indicated by A, after breaking below 1480 on Wednesday, the FBM KLCI continue losing another 4.41 points or 0.3% on Thursday. Meanwhile, the 14, 21, 31 EMA is still serving as the dynamic resistance to the KLCI while the next support for the KLCI is found at 1400~1420 level.

As indicated by B, total market volume fell 6.55% on Thursday, with volume below the 40-day volume moving average. This suggests that the market is still lightly participated, and also implies that investors are still feeling not confident about the local market. Generally, without sufficient market inflow of fresh capital, the market as a whole is less likely to pickup any strength.

As indicated by C, the Stochastic stays below 30%, after breaking below 30% on Wednesday. The Stochastic is currently showing a short term bearish signal for the KLCI.

In conclusion, the technical outlook for the KLCI is still weak as the KLCI is still staying below the falling 14, 21, 31 EMA dynamic resistance, coupled with low market participation.

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