As shown on the chart above, the KLCI continue to rebound on Wednesday, gaining 7.35 points or 0.54% to close at 1371.55 points. The 14, 21, 31 EMA is still serving as the dynamic resistance to the KLCI. Support for the KLCI is at 1310 while the resistance is at 1400 psychological level.

As indicated by B, total market volume fell by 6.4%, with volume below the 40-day volume moving average. This suggests that the market is still lightly participated, as the inflow of fresh capital is still low amid weaker market sentiment, and low investor confidence.

As indicated by C, the Stochastic continue to climb on Wednesday, after breaking above 30% on Tuesday. This suggests that the short term movement of the KLCI is still in a technical rebound stage. If the Stochastic could break above 70%, it would be a short term bullish biased signal for the KLCI.

In conclusion, the downtrend of the KLCI remains intact, and the KLCI technical outlook is still weak, as it is still staying below the 14, 21, 31 EMA dynamic resistance.

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