Due to the sharp decline of the US market on last Friday, together with the KLCI being resisted by the 1668, the KLCI fell on Monday, closing at 1661.95 points, losing 4.4 points. As indicated by A, the immediate resistance for the KLCI is still at 1668 while the 14, 21, 31 EMA is still serving as the dynamic support.

As indicated by B, total market volume fell 7.45%, but still above the 40-day Volume Moving Average. This suggests that the market is well-participated, but since losers outnumbered gainers, this could suggest that profit taking is relatively higher on Monday, with 407 losers over 259 gainers.

As indicated by C, the Stochastic %K line retreats, breaking below 70%, while the %D line breaks above 70%. This has shown some conflict of signals, but it generally suggests that the short-term movement of the KLCI is still positive, and the falling of the %K line might be over sensitive as the KLCI opened higher and closed near its daily low. Nevertheless, there is no weakening signal for the KLCI for now, unless the Stochastic should fall below 30%.

In conclusion, although the KLCI failed to break its 1668 resistance, the immediate technical outlook remains positive. If the KLCI could rebound again from the 14, 21, 31 EMA, there is still a good chance for the KLCI to re-test its 1668 hurdle.