On Thursday, the KLCI fell 10.81 points or 0.69%, to close at 1550.49 points. As indicated by A, the KLCI is about to test the 1530 – 1540 support, as well as the 14, 21, 31 EMA dynamic support.

As indicated by B, total market volume fell 5.38%, but still above the 40-day volume moving average. This suggests that the market overall is still actively participated.

As indicated by C, the Stochastic is still falling, and if the Stochastic should fall below the 70%, it would mark an end to the short term bullish signal. If the Stochastic should continue to fall and break below 30%, it would be a short-term bearish signal for the KLCI.

The market was in heavy profit taking mood on Thursday, with 668 losers over 239 winners. However, despite the falling of the KLCI, the uptrend of the KLCI remains intact. As long as the KLCI is still staying above the 14, 21, 31 EMA dynamic support, the technical outlook shall remains positive.