Most of the regional markets ended lower on Thursday (except the Shanghai Composite Index) as the overnight US and European markets closed sharply lower. The KLCI fell 5.83 points or 0.36% to close at 1593.44 points. Resistance for the KLCI remains at 1600 to 1609.33 while the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI, as indicated by A.

As indicated by B, total market volume increased 3.66%, but volume is still far below the 40-day Volume Moving Average, reflecting that investors are still not feeling confidence above the lightly participated market.

As indicated by C, after breaking below 70%, the Stochastic is still falling, suggesting that the KLCI is having its technical correction. If the Stochastic should break below 30%, it would suggesting that the KLCI is entering its short-term bearish territory.

In conclusion, the uptrend of the KLCI remains uninterrupted despite the technical correction, and therefore, it is still too early to call for any reversal. However, the overhead hurdle of the 1600 – 1609.33 is likely to be a strong resistance for the KLCI if the market participation is still low.