On Monday, the KLCI opened gap up at 1678.3 points, and marked another intra-day new high at 1679.37 points. But soon it attracts profit takings in some blue chips, causing the KLCI giving up its early gains, and only managed to close at 1672.56 points, up only 0.67 of a point. The temporary resistance for the KLCI is at 1679 or 1680, while the support is at the 14, 21, 31 EMA dynamic support.

As indicated by B, total market volume fell 11.95%, but still above the 40-day Volume Moving Average. This shows that the market is still actively participated. Technically, with volume staying above the 40-day Volume Moving Average, the market sentiment as a whole is likely to remain on the positive side.

As indicated by C, the Stochastic retreats, but remain above 70%, in its short-term bullish territory. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a technical correction.

In conclusion, due to the gap up of the KLCI, profit takings kicked in as investors lock-in some profit, and pulled down the KLCI. Nevertheless, with the KLCI above the 14, 21, 31 EMA, the immediate technical outlook remains positive.