As indicated by A, the KLCI ended 17.19 points or 1.2% lower on the first day of 2012, closing at 1513.54 points. The KLCI is having a pull-back effect after breaking above the 1500 and the 200-day Moving Average, but the uptrend of the KLCI remains intact, as the L1 line is still the uptrend line of the KLCI. Immediate resistance for the KLCI is at 1530 Fibonacci, while the support is at 1500 and the 200-day MA.

As indicated by B, total market volume increased 20.7%, but still below the 40-day volume moving average line. This suggests that the overall market is still not yet actively participated, as it implies that investors are still not feeling confident about the local market.

As indicated by C, despite the Stochastic is falling on Tuesday, it stays above 70% in the short term bullish territory, and this suggests that the short term movement of the KLCI is still positive.

In conclusion, despite breaking above the 1500 and the 200-day Moving Average, the break out was only accompanied by thin volume, thus the break out was not strong. Now that the KLCI is having a pullback effect, it is crucial for the KLCI to stay above 1500 and the 200-day Moving Average, or the long term movement shall remains bearish biased. However, the technical outlook for the KLCI for now is still positive, provided that the KLCI could stay above the L1 uptrend line.