On Thursday, the KLCI fell 16.99 points or 1.14% to close at 1472.65 points, due to the overnight severe loss of the US markets. As indicated by A, the KLCI is still staying above the 14, 21, 31 EMA dynamic support, thus suggesting that the short term uptrend is still intact. Resistance for the KLCI remains at 1487 while the support is at 1453, other than the 14, 21, 31 EMA.

As indicated by B, total market volume fell only 1.26%, with volume still high above the 40-day volume moving average. This suggests that the market is still active participated, however, due to the falling of the KLCI on Thursday, the strong volume actually might imply that the selling pressure is high.

As indicated by C, the Stochastic fell below 70%, which is a signal suggesting that the short term bullish signal has ended. Also, it is a signal suggesting a beginning of a technical correction. If the Stochastic should fall below 30%, it would be a short term bearish signal for the KLCI.

In conclusion, the short term uptrend of the KLCI is still intact, and as long as the KLCI is still above the 14, 21, 31 EMA, the technical outlook is still positive.

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