As indicated by A, the KLCI has an intra-day high reaching 1651.66 point, but as it was approaching the 1655 historical high, profit takings in blue chip counters started to kick in, and as a result, it pushed the KLCI to close lower, at 1640.33 point, losing 2.62 points. Therefore, the 1655 remains as the immediate resistance for the KLCI while the support is at 1625.

As indicated by B, total market volume fell 20.92%, with volume below the 40-day Volume Moving Average. This shows that the market overall is still lightly participated, as investors are being cautious, while reluctant to take up new positions. Technically speaking, without sufficient inflow of fresh capital, the market as a whole is less likely to pick up its strength.

As circled at C, although the Stochastic %K line broke above 70% by margin last Friday, this short-term bullish signal is yet to be confirmed as the %D is still below 70% at the moment.

In conclusion, after rebounding strongly on last Thursday and Friday, the KLCI pulled back as it was nearing its historical high of 1655. As the KLCI was resisted by this strong resistance, many counters were also showing signs of profit takings as losers outnumbering gainers again. Technical, with the KLCI still capped under 1655, it is still unable to resume its previous uptrend. Nevertheless, the KLCI is not showing any downtrend formation neither.