As indicated by A, after touching the 14, 21, 31 EMA on Friday, the FBM KLCI stopped rising. On Monday, the KLCI started falling after being resisted by the 14, 21, 31 EMA, losing 10.97 points or 0.74%, to close at 1463.12 points. Other than the 14, 21, 31 EMA dynamic resistance, 1480 is also a resistance for the KLCI, while the support is at 1423.

As indicated by B, total market volume fell 24.88% on Monday, with volume further below the 40-day volume moving average. This suggests that the market is lightly participated, as investors are being cautious while staying on the sidelines, amid market uncertainty and weaker confidence. Generally, without sufficient inflow of fresh capital, the KLCI or the market as a whole is less likely to regain its strength.

As indicated by C, the Stochastic failed to break above 50%, after breaking above 30% last week. If the Stochastic should later return to below 30%, it would be the short term bearish signal for the KLCI again.

In conclusion, the KLCI is still forming lower-highs, thus the downtrend of the KLCI remains intact, and the technical outlook for the KLCI is still weak.

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