On Monday, the KLCI marked a historical new high with 1650.42 points, but it only managed to close at 1646.32 points, gaining only 0.96 of a point, which is still below the 1647.94 previous high. As indicate by A, the KLCI failed to confirmed a bullish breakout. Resistance for the KLCI is now at 1647 ~ 1650, while the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI.

Despite the KLCI reaching for a historical new high, total market volume fell 20.06%. As indicated by B, total market volume failed to break above the 40-day Volume Moving Average, suggesting that the market participation was relatively low. This implies that investors are not feeling confident about the market, and choose to stay on the sidelines.

As indicated by C, the Stochastic retreats after touching 100%, but still above 70%. This suggests that the short-term movement of the KLCI is still in the bullish territory. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a technical correction.

In conclusion, although the KLCI is making a new high, the bullish breakout was rather unconvincing, as market volume was embarrassingly low. Also, profit taking was still dominant on Monday with losers outnumbering gainers. But still, with the KLCI above the 14, 21, 31 EMA, the immediate technical outlook for the KLCI is still positive.