Meanwhile, the KLCI remains above the 20-day Bollinger Upper Band, and this suggests that the KLCI is still over-heated, and a pullback is still expected to take place, which is a form of a technical correction.

As indicated by B, total market volume increased 11.56%, with volume above the 40-day Volume Moving Average. Generally, if volume should stay above the 40-day Volume Moving Average, it suggests that the market participation is healthy, thus usually help lifting or sustain the positive market sentiment.

As indicated by C, the Stochastic started falling after staying above 90% for a few days. This is a sign of an over-heated condition. If the Stochastic should start falling below 70%, it will be a signal suggesting a beginning of a technical correction.

In conclusion, it is normal to have a sort of pullback for the KLCI after rising non stop for 1 week. Provided that the KLCI could stay above the 14, 21, 31 EMA dynamic support after the pullback, there is still a good chance for the KLCI to form a higher-low.

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