The FBM KLCI has violated the 1,700 points support level and this shows that the bullish sentiment has waned despite the market starting on a bullish note.
The next support level is at 1,680 points while immediate resistance is at 1,720 points.
Despite the decline, the FBM KLCI remained bullish above the short- and long-term 30- and 200-day moving averages.
Momentum indicators like the Relative Strength Index and oscillator have been declining and this indicates stronger selling pressure and has caused the bullish momentum to weaken.
Furthermore, the index has pulled back to the middle band of the Bollinger Bands indicator.
Expect the market to continue its bullish trend after the correction.
The next support level to test is the short-term 30-day moving average currently at 1,688 points.