The KLCI opened higher on Tuesday, as lead by over-night rebound of the US market as well as the positive opening of the regional markets. However, despite its early gains, the KLCI ended lower by profit takings. At the close, the KLCI fell 0.92 points to close at 1653.36 points. As indicated by A, the KLCI is still supported by the 14, 21, 31 EMA dynamic support while the immediate resistance is still at 1688.

As indicated by B, total market volume is still unable to break above the 40-day Volume Moving Average. Despite volume were slightly lower than yesterday, the market turnover value actually gained 28.54%, with RM 1,261,185,250. This suggests that not only penny stocks are among the most actively traded counters, some of the blue chips were being actively traded, that includes Maybank and Airasia. Nevertheless, technically speaking, if volume should break above the 40-day Volume Moving Average, it suggests that the market participation is at its ideal level to help sustain the KLCI rally.

As indicated by C, the Stochastic is at around 50%, which is the neutral region. This shows that the KLCI short-term is consolidating at a narrow range, while the direction is still unclear.

In conclusion, with the KLCI above the 14, 21, 31 EMA, the immediate technical outlook for the KLCI is still positive. However, whether or not if the KLCI could resume its uptrend, we still need to monitor its further development as we are still lacking some bullish characteristics, one of which is the required higher volume.