As shown on the chart above, the Bollinger Band width further contracted another 16%, suggested the KLCI was still consolidating. Mean while, the KLCI remained below the 10 days Bollinger middle band, which is also serving as the dynamic resistance.

At the moment, direction of the KLCI remained unclear, and the consolidation is expected to continue until an increase of the Bollinger band width. Immediate support for the KLCI is still 926 Fibonacci Retracement and the next support level would be at the 913 followed by the 900 psychological support.

Total market volume on Wednesday decreased 2.1% with only about 494 million shares. Volume remained remotely below the 40 days VMA level, suggested that the market was really lightly participated. (Study B)

Stochastic continued to stay below the 30% bearish region, thus the market sentiment for the short-term is still on the weak side. If the Stochastic were to stay below the 30% level, more downside risk for the KLCI is expected. (Study C)

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