Despite the rebound of the regional markets due to the overnight rising of the US markets, the KLCI remains weak. Nonetheless, the KLCI managed to close 1.75 points higher. As indicated by A, 1120 WinChart Automatic Fibonacci Retracement is still the support for the KLCI while the 1164 WinChart Automatic Fibonacci Retracement is the resistance.

As shown on the chart, the Bollinger Bands Width contracted another 28%, and therefore, suggesting that the KLCI is still consolidating in low volatility. In another words, the market direction shall remain unclear until the Bollinger Bands Width re-expands.

As indicated by B, total market volume declined 7.2% on Thursday and the volume is still below the 40-day VMA level. In short, the market participation is till low, thus the KLCI is expected to remain weak.

As circled at C, the Stochastic rebounded on Thursday as a sign of a technical rebound signal after hitting below the over-sold region (below 10%). Nevertheless, the Stochastic has to break above the 30% level to confirm the technical rebound signal.

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