On Tuesday, the KLCI had its intraday high reaching 1458 points, gaining up to 26.4 points. However, at the close, the KLCI could only sustain a 13.17 points or 0.92% of gain, to close at 1444.72 points. As indicated by A, the KLCI is still staying below the 14, 21, 31 EMA dynamic resistance, while the support remains unchanged at 1423 Fibonacci Retracement Line.

Despite the strong rebound on Tuesday, total market volume fell 17.32%, with volume below the 40-day volume moving average. As indicated by B, if volume should stay below the 40-day volume moving average, it suggests that the market overall is still quiet.

As indicated by C, the Stochastic breaks above the 30% by margin on Tuesday, thus not able to confirm the signal of the KLCI leaving the short term bearish territory. If the Stochastic should continue to rise, it would be a short term technical rebound signal for the KLCI.

In conclusion, with the KLCI below the 14, 21, 31 EMA dynamic resistance, the immediate technical outlook for the KLCI remains negative. However, the KLCI has not formed a downtrend, not until it should form lower-highs.

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