As indicated by A, the KLCI was traded in narrow range on Monday, gaining 1.16 point or 0.07%, to close at 1562.82 points. Meanwhile, other than the 14, 21, 31 EMA dynamic support, support for the KLCI is at 1530 – 1540.

As indicated by B, total market volume fell 20.67%, but volume remains above 40-day volume moving average, and this suggests that the market overall is still actively participated. Generally, if volume should reduce during a consolidation of the KLCI, it suggests a healthy correction or consolidation.

As circled at C, the Stochastic remains above 70%, in the short term bullish territory. This suggests that the short term movement of the KLCI is still positive.

In short, the utprend of the KLCI remains intact, and provided that the KLCI is still supported by the 14, 21, 31 EMA dynamic support, the technical outlook is also positive. Next resistance for the KLCI is at 1600.