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On Monday, the composite index closed mixed, gaining 1.54 points to 929.39 points. As indicated by R1 line, the KLCI is now resisted by the 930 resistance level. Mean while, as circled by A, the KLCI also breached above the 20 days Bollinger upper band, in which, a “pull-back” effect shall take place, thus a technical correction will happen in the short-term. (Study A)

Nonetheless, provided that the KLCI is still trending in the uptrend channel (T1 and T2), outlook for the KLCI remains bullish.

Total market volume on Monday gained another 6.2%, stood at 1.01 billion shares. Total market volume on Monday also made a new high for nearly 2 years (since 24th of February, 2004). With the Doji-star candle stick coupled with the over-heated 20 days upper band reading, Monday's high volume could suggest a temporary reversal. (Study B)

As circled by C, both lines of the Stochastic has entered above the 90% level, which is the short-term over-bought region. Therefore, a technical correction shall take place. Provided that the %D line can stay above the 70% level after the correction, market sentiment for the short-term would still be bullish bias. (Study C)

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