As indicated by A, the KLCI was traded at a narrow range on Tuesday while still resisted by 1655. The KLCI closed 0.21 of a point higher to 1654.11 points. Meanwhile, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI.

As indicated by B, total market volume fell 10.62%, with volume above the 40-day Volume Moving Average. Generally, this suggests that the market is still actively participated. However, since there were 440 losers over 274 gainers, it shows that profit taking is still dominant.

As circled at C, the MACD histogram is rising, thus forming a Rounding bottom. The rising of the MACD histogram suggests that the KLCI short-term could be picking up some strength.

In conclusion, the KLCI failed to break above 1655 resistance as profit taking was still strong. Despite the KLCI uptrend is supported by selected blue chip counters, the overall investor confidence remains unconvincing, which resulted a cautious mood in the market.