On Friday, the KLCI was catching up with the regional market's gain, after re-opening following the festive holiday. The KLCI gained 26.82 points or 1.85%, to close at 1474.09 points. However, as indicated by A, the KLCI is resisted by the 1480 level as well as the 14, 21, 31 EMA dynamic resistance. Support for the KLCI is at 1423.

As indicated by B, total market volume increased 90.64%, but still not able to break above the 40-day volume moving average. This suggests that the market is still quiet, as investors are not feeling confident about the local market. Without sufficient market inflow of fresh capital, the KLCI or the market overall is less likely to regain its strength.

As indicated by C, the Stochastic breaks above 30%, as the KLCI rebounded strongly on Friday, breaking away from the short term bearish territory. Technically, if the Stochastic should later break above 70%, it would be a short term bullish biased signal or the KLCI.

In conclusion, despite the strong rebound of the KLCI on Friday, it is only a technical rebound, and not yet any reversal signal. In short, as long as the KLCI is still resisted by the 14, 21, 31 EMA, the technical outlook for the KLCI shall remains bearish biased.

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