As shown on the chart above, the Bollinger Bands Width expanded only 1%, which shows that the band width expansion is slowing down. Therefore, this is a sign of a possible consolidation for the KLCI, and the KLCI technically rebounded on Wednesday. As indicated by A, the KLCI is testing the T2 downtrend line. If the KLCI should break above the T2 line, the next resistance shall be a the Bollinger Middle Band. Meanwhile, since the Bollinger Middle Band level is also the 1164 WinChart Automatic Fibonacci Retracement line, the resistance is likely to be tougher.

Nevertheless, support for the KLCI is still at 1120 WinChart Automatic Fibonacci Retracement line, and the next support shall be at 1100 Fibonacci level. If the Bollinger Bands Width should contracts, the KLCI is likely to continue rebound, and the first target would be the Bollinger Middle Band.

Despite the rebound of the KLCI, total market volume declined 14.1%. As indicated by B, volume remains below the 40-day VMA level, suggesting that the market participation is still weak. If the volume should remains below the 40-day VMA level, the rebound is likely to be weak.

As circled at C, the Stochastic also rebounded on Wednesday. If the Stochastic should break above the 30% level, and coupled with the increase of volume above the 40-day VMA level, it would be a signal confirming the technical rebound.

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