On Wednesday, the Bollinger Bands only expanded 3%, suggesting that the upside volatility of the KLCI is insignificant. If the Bollinger Bands should contract, it would be a signal suggesting a consolidation for the KLCI. With the KLCI above the Bollinger Middle Band, immediate technical outlook shall remains positive.

As indicated by B, total market volume fell 30.3%, as investors takes profit before the market closed for holiday. Therefore, volume fell below the 40-day VMA level, suggesting that the market participation is insufficient. It is rather normal to have lower volume during a consolidation stage, but if the KLCI should take out any resistance, a substantial market volume is needed.

As indicated by C, the Stochastic started falling after hitting 100%, suggesting that the KLCI was over-heated. Nevertheless, with the Stochastic still above 70%, the short term movement of the KLCI is still bullish biased.

In conclusion, the KLCI is temporary resisted by 1474 level, but the overall uptrend remains intact, as the 14, 21, 31 EMA is still serving as the dynamic support.

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