Since rebounding form its low or 1310.53, the KLCI has been rebounding for a few days, and on Friday, it tested the 1400 psychological resistance level, as well as the 14, 21, 31 EMA dynamic resistance. The KLCI ended 0.33 points lower, despite having its intra-day high breaching above 1400. Support for the KLCI remains at 1310.

As indicated by B, total market volume increased 19.35%, with volume above the 40-day volume moving average. However, the increased of volume was associated with the KLCI resisted by the resistance, thus the higher volume may actually suggests some increased in profit taking activities.

As indicated by C, the Stochastic is still rising, but not yet breaking above 70%, thus the KLCI is not yet showing a short term bullish signal.

In conclusion, despite rebounding for a few days, the downtrend of the KLCI remains intact, with the 14, 21, 31 EMA still serving as the dynamic resistance. If the KLCI should start falling after being resisted by the 14, 21, 31 EMA or the 1400, it would be forming yet another lower-highs, thus the technical outlook for the KLCI stays negative.

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