As indicated by A, the KLCI continue its fall on Tuesday, losing 8.75 points or 0.6% to close at 1454.37 points. Meanwhile, the 14, 21, 31 EMA is still serving as the dynamic resistance to the KLCI while the support for the KLCI remains at 1423.

As indicated by B, total market volume increased 10.37%, but still further below the 40-day volume moving average. This suggests that the market is still quiet, as investors are reluctant to take up new positions. Also, the low volume suggests that investors are not feeling confident about the local market.

As indicated by C, the Stochastic fell below 30% by margin on Tuesday, entering the short term bearish territory. If the Stochastic should continue to stay below 30%, the short term movement of the KLCI is likely to be weaker.

In conclusion, the downtrend of the KLCI remains, and as long as the KLCI is still staying below the falling 14, 21, 31 EMA dynamic resistance, the technical outlook for the KLI is expected to be weak. Amid low market participation and low inflow of fresh capital, the KLCI or the market as a whole is less likely to regain its strength.

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