On Tuesday, the Bollinger Bands Width expanded another 8% while the KLCI remains below the Bollinger Middle Band. Therefore, this suggests that the KLCI is still having a bearish biased tendency. If the Bollinger Bands Width should continue expanding, with the KLCI staying below the Bollinger Middle Band, the bearish biased signal shall continue. Nevertheless, support for the KLCI is at 1244 Fibonacci Retracement line while the resistance is still seen at 1300 psychological resistance line. (Study A)

As indicated by B, total market volume declined another 5.6% on Tuesday, and needless to mention, the volume is still below the 40-day VMA level. This shows that our market participation is indeed quiet, thus the KLCI is less likely to pick up any movement.

As circled at C, the Stochastic remains below the 30% level, despite a slight rebound on Tuesday. At the moment, the Stochastic is still showing a short term bearish signal, and the market movement for the short term is still bearish biased. If the Stochastic should break above the 30% level, it would be a signal suggesting an end to the short term signal, and the KLCI would have another chance to consolidate again.

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