Despite the over-night gains of the US and the European markets, the KLCI opened higher and had its intra-day high touching 1443.51 points (up 5.9 points), but ended at 1430.93 points, losing 6.68 points or 0.46%. The 14, 21, 31 EMA is still serving as the dynamic resistance to the KLCI while the KLCI is set to test its support of 1423.

As indicated by B, total market volume fell 4.9%, with volume below the 40-day volume moving average. This again shows that the market is still quiet, and if there are no positive news to stimulate the market sentiment, the light volume is less likely to help lift the market sentiment.

As indicated by C, the Stochastic stays below 30%, in the short term bearish territory, and the short term movement of the KLCI is expected to stay weak, until the Stochastic could successfully break above 30%.

In conclusion, the downtrend of the KLCI remains intact, and the technical outlook for the KLCI stays negative, as long as the KLCI is still resisted by the 14, 21, 31 EMA dynamic resistance. If the KLCI should break below 1423, it would be making a one year new low.

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