As indicated by A, the KLCI retreated 10.42 points to close at 1148.68 points, and is currently supported by the Bollinger Middle Band, which mentioned in last week's analysis. Therefore, the Bollinger Middle Band is still the dynamic support for the KLCI. Other support for the KLCI is at 1140 WinChart Automatic Fibonacci Retracement while the resistance remains at 1172 WinChart Automatic Fibonacci Retracement.

It is rather normal to see the KLCI retreat after breaking above the T1 downtrend line. If the KLCI should rebound from the T1 line, it would confirm the break out signal, thus suggesting a positive signal for the KLCI. As shown on the chart, the Bollinger Bands Width contracted 12%, which suggests that the KLCI is currently consolidating. The consolidation is expected to continue until the Bollinger Bands Width re-expands again.

As indicated by B, total market volume declined 9.5%, and therefore, the volume is now below the 40-day VMA level. This shows that the market participation is insufficient, as investors are still staying on the sidelines. If the volume should remain below the 40-day VMA level, the KLCI is likely to consolidate with some weakening biased.

As circled at C, the MACD histogram formed a rounding top, which suggested a beginning of a technical correction signal. The technical correction is expected to continue until the MACD histogram should tick up and form a rounding bottom.

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