The KLCI had its daily high reaching 1594.72 points, but as it was approaching the 1597.08 historical high, profit taking pulled the KLCI slightly and easing some of the early gains. At the close, the KLCI was at 1589.22, gaining 5.44 points or 0.32%. Resistance for the KLCI remains at 1600 while the support is the 14, 21, 31 EMA as indicated by A.
As indicated by B, total market volume fell 11.14%, with volume below the 40-day Volume Moving Average. This suggests that the market is relatively quiet, as investors stay cautious amid the key index is testing its historical high.
As indicated by C, the Stochastic stays above 70%, in the short-term bullish territory. This suggests that the short-term movement of the KLCI is still positive. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a short-term technical correction.
In conclusion, despite the lower volume, the uptrend of the KLCI remains intact. Even if the KLCI should retreat from near 1600 mark, it is still a normal reaction. Provided that the KLCI should still be supported by the 14, 21, 31 EMA or repeating higher-lows formation, the technical outlook is still positive.