On Thursday, the KLCI opened higher, but due to the active profit taking, the KLCI ended 11.18 points or 0.68% lower, to close at 1623.91 points, breaking below the L2 uptrend line. As indicated by A, the KLCI is testing the 14, 21, 31 EMA dynamic support, while the resistance remains at 1647.94 points.

As indicated by B, total market volume fell 12.85%, with volume above the 40-day Volume Moving Average. If the KLCI should continue to fall with high volume, it suggests the selling pressure is relatively strong.

As indicated by C, the Stochastic %K line breaks below 30%, triggering a short-term bearish signal. However, the %K line could be a little sensitive, thus it is usually better to use the %D line (dotted line) to confirm such signal.

In conclusion, the KLCI is testing the 14, 21, 31 EMA dynamic support, while temporary closing below the L2 uptrend line. If the KLCI should fail to return to above the L2 line in near future, it means that the L2 uptrend is temporary interrupted. However, this does not mean that the KLCI is having a bearish reversal, for the KLCI could still consolidate further.