As indicated by A, the Bollinger Bands Width of the KLCI remains contracted. The contraction of the Bollinger Bands width suggests a lower volatility of the KLCI, thus implying a consolidation. If the Bollinger Bands Width should expands with the KLCI staying above the Bollinger Middle Band, it would be a bullish signal. Otherwise, if the Bollinger Bands Width should expands with the KLCI staying below the Bollinger Middle Band, it would be a bearish signal.

Total market volume on Friday remains below the 40-day VMA level. This shows that the overall market participation is still low, and therefore, without sufficient market participation, hence, the inflow of fresh capital, the KLCI is less likely to turn bullish. (Study B)

As indicated by C, the MACD histogram continue ticking lower, and therefore, the rounding top remains intact. Provided that the MACD histogram is still falling, the market movement for the short term shall remain bearish biased.

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