On Wednesday, the KLCI opened higher as lifted by Hong Leong Bank Berhad's opened gap up. But the KLCI could not sustain its early gains as investors took profit in blue chips. At the close, the KLCI ended 1.6 points lower to 1673.07 points. However, as indicated by A, the KLCI stays above 1668, while still supported by the rising 14, 21, 31 EMA dynamic support, thus the uptrend is still intact.

As indicated by B, total market volume increased 43.81%, which is the highest volume since 23^rd of April this year. Meanwhile, market turnover also increased 45%, with RM 1.691 billion transacted. This suggests that the market is actively participated, and technically, if volume should remain above the 40-day Volume Moving Average, it is likely to sustain the improving sentiment.

As indicated by C, the Stochastic stays above 70%, in its short-term bullish territory. In other words, the KLCI short-term movement is not showing any weakness yet.

In conclusion, other than low-priced stocks, some blue chips were also actively traded. Although profit taking was mostly stronger for the day, many stocks started to recover from their early losses, and as a result, pulling the gainer / losers ratio to almost even, with 342 gainers over 353 losers. Nevertheless, the current technical outlook for the KLCI remains positive, and with the KLCI less than 7 points away from its temporary resistance of 1680, the KLCI could easily re-test its historical high with just a little favorable catalysis.