After the festive holiday, the KLCI touched another new high of 1655.39 points on Wednesday morning, but it still closed below 1655, as indicated by A, suggesting that the resistance is still at around 1654- 1655. The KLCI gained 2.46 points at 1652.25 points. The 14, 21, 31 EMA remains as the dynamic support to the KLCI.

As indicated by B, although total market volume fell 8.57%, it is still above the 40-day Volume Moving Average, suggesting that the market is relatively active. However, since profit taking was still very active, the relatively high volume may still imply some strong selling pressure.

As circled at C, the Stochastic is still above 70%, in its short-term bullish territory. This suggests that the short-term movement of the KLCI is still positive. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a technical correction.

In conclusion, the uptrend of the KLCI remains intact, while the technical outlook is still positive. But since the KLCI is still being resisted by 1655, it is temporary limiting the upside room of the KLCI. Still, the relatively high volume associated with the KLCI's consolidation is implying stronger profit takings.