As indicated by A, the KLCI continues its rally on Wednesday, closing at its daily high of 1604.39 points, gaining 9.41 points or 0.59%. The KLCI is set to test the historical new high of 1609 points. Meanwhile, the KLCI remains above the rising 14, 21, 31 EMA dynamic support.

As indicated by B, total market volume breaks above the 40-day Volume Moving Average level successful for the first time in two months. Total market volume gained 50.29%. If volume should remain above the 40-day Volume Moving Average, the market sentiment as a whole is expected improve.

As circled at C, the MACD histogram is still rising, thus suggesting that the KLCI short-term is still gaining strength. However, the Stochastic is touching 100%, and suggesting that the KLCI short-term is actually over-heating, and some pullback or minor correction is likely.

In conclusion, the KLCI short-term uptrend is still intact, while ready to test its historical new high resistance. However, due to the short-term over-heating condition, coupled with this major resistance, the KLCI might take a small pullback or sort, before it could really break above its historical new high. Nevertheless, provided that the KLCI is still above the 14, 21, 31 EMA, the immediate technical outlook is still on the positive side.