As indicated by A, the KLCI rebounded 14.29 points or 1.05%, led by the over-night gains of the US market. However, as indicated by A, the 14, 21 ,31 EMA is still serving as the dynamic resistance to the KLCI. Support for the KLCI remains at 1310.

Although the KLCI rebounded more than 1% on Wednesday, total market volume on Wednesday did not increase, but instead, fell 12.26%. As a result, volume is now still below the 40-day volume moving average. This suggests that the market is still quiet, and inflow of fresh capital is still insufficient, and also, the lower volume implies that investors are not feeling confident about the local market. (Study Arrow B)

As indicated by C, the Stochastic ticked up on Wednesday, as the KLCI technically rebounded. However, the Stochastic has not broken above 70%, thus not showing any short term bullish signal for the KLCI yet.

In conclusion, despite the rebound on Wednesday, the downtrend for the KLCI is still intact, and as long as the KLCI is still resisted by the 14, 21 31 EMA dynamic resistance, the technical outlook shall remains negative.

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