As indicated by A, the KLCI ended 8.18 points lower, and therefore, the KLCI is now breaking below the 1120 WinChart Automatic Fibonacci Retracement level. If the KLCI should not rebound to above the 1120 level again in the near term, the next support for the KLCI would be at 1090 WinChart Automatic Fibonacci Retracement line, and the resistance would be at 1164 WinChart Automatic Fibonacci Retracement line.

Meanwhile, as shown on the chart, the Bollinger Bands Width contracted another 20% on Wednesday, suggesting that the KLCI is still in its consolidation stage. If the Bollinger Bands Width should continue contracting, this shows that the KLCI volatility is reducing, and the consolidation is likely to continue. From the technical analysis point of view, the best scenario for now is a sideways consolidation.

As indicated by B, total market volume declined 20.4%, and the volume failed to break above the 40-day VMA level again. This suggests that the investor confidence is still low, as they choose to stay on the sidelines.

As circled at C, the Stochastic remains below the 30% level, which is the short term bearish region. Therefore, the market movement for the short term remains bearish biased. If the Stochastic should rebound and break above the 30% level, it would be a signal suggesting a technical rebound.

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