On Monday, the KLCI was still trading in a narrow range, gaining only 0.93 points at the close. As indicated by A, the KLCI is still below the 1500 level, which is also the level of the 200 day Moving Average line. Therefore, the 1500 is likely to be a strong resistance for the KLCI, while the support is at 1430.

As indicated by B, total market volume increased 36.32%, with volume high above the 40-day volume moving average. However, most of the actively trading counters were lower liners, and their call-warrants, which were trading below 50 cents. Therefore, the high volume on Monday has failed to truly reflect the investors' confidence about the local market.

As indicated by C, since breaking above 70%, the Stochastic has been staying above 70%, in the short term bullish territory. This suggests that the short term movement of the KLCI is still positive.

In conclusion, the technical outlook for the KLCI remains positive but since the KLCI is still below 1500, the KLCI has not yet resuming its uptrend movement, but rather, continue in its trading range or consolidating stage.

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