As mentioned on yesterday’s analysis, KLCI retested the 899.89 WinChart automatic Fibonacci Retracement line but failed to breach through. Therefore, 899.89 remains a resistance for KLCI. As for the support, needless to say, it will be the 890.20 Fibonacci Retracement as well as the T1 dynamic support.

10 days Bollinger Bands contracted 2%, indicating that KLIC’s volatility has gradually decreased, thus, another sign of market consolidation. As long as KLCI remains above the middle band, market outlook remain positive. Total market volume has decreased 3.4%, but still above the 40 days volume moving average (VMA). (Refer to B)

As shown in C, MACD histogram has shown a possible “round-top” signal, suggesting that the KLCI will have a technical correction. If the MACD histogram indeed shows “round-top”, technical correction shall continue until the histogram shows new sign of “round-bottom”.

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