As indicated by A, the KLCI rebounded slightly on Tuesday, after falling for a few days. The KLCI gained 3.91 points or 0.27%, but as indicated by A, the 14, 21, 31 EMA is now serving as the dynamic resistance. Support for the KLCI is at 1420 Fibonacci.

As indicated by B, total market volume fell 10.22%, with volume below the 40-day volume moving average. This suggests that the market is now quiet, as investors confidence is reduced. In short, if volume should stay below the 40-day volume moving average, the market sentiment as a whole is likely to be at cautious

Despite the rebound on Tuesday, the Stochastic remains below 30%, in the short term bearish territory. This suggests that the short term movement of the KLCI is weak.

In conclusion, the immediate technical outlook for the KLCI is now negative, and if the KLCI should form lower-highs, it would be an early signal suggesting a possible downtrend formation.

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