On again, on Monday, the KLCI precisely resisted by the Bollinger Middle Band, closing 6.39 points lower. This shows that the Bollinger Middle Band is still the immediate dynamic resistance for the KLCI. Also, the Bollinger Bands Width contracted another 17% on Monday, suggesting that the KLCI is likely to consolidate. (As indicated by A)

Nonetheless, since the KLCI is still below the Bollinger Middle Band, and therefore, if the Bollinger Bands Width should re-expand again, there are more downside risk for the KLCI. Support for the KLCI remains at 1120 WinChart Automatic Fibonacci Retracement line, and the another resistance other than the Bollinger Middle Band is at 1164 WinChart Automatic Fibonacci Retracement line.

As indicated by B, total market volume declined 19.2%, which mark a new 25 months volume new low (since 12-6-2006). This suggests that investor are being very cautious while choosing to stay on the sidelines. However, the new low of volume also implies that the KLCI is likely at its bottom for the short term.

As indicated by C, the MACD histogram is still rising. If the MACD histogram should break above the zero level and continue rising, it would mark an MACD bullish signal, suggesting an improving short to mid term market movement. If the MACD histogram should wander at the zero level, then the KLCI is likely to continue its consolidation.

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