As circled by A, the KLCI ended mixed on Thursday but still remained above the 20 days Bollinger Upper Band. Therefore, this suggested that the KLCI was still over-heated, thus a pull-back is still due to take place as a form of correction. (Study A) Mean while, the immediate support is seen at 1110 level while the rising 14, 21, 31 EMA continued serving as the dynamic support to the KLCI.

Total market volume on Thursday was 17% higher while touching the 40 days VMA level. This shows a sign of improved market participation. If the volume could continued increase and remained above the 40 days VMA, the market sentiment would improve. However, with the KLCI closing mixed with a “doji” candle, the increase of volume could implied a reversal signal.

Similar to yesterday's analysis, both %D and %K of Stochastic remained above 90% level, which is a short-term over-bought region. Therefore, this suggested that the KLCI was over-heated and a correction is due to take place. Nevertheless, with the Stochastic still above 70% level, market movement for the short-term is still bullish bias. (Study C)

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