As indicated by A, the KLCI is precisely supported at the T1 Trend line, which is the typical pattern as mentioned in last week's analysis after the KLCI broke above the T1. If the KLCI should remain above the T1 line, the break out of the downtrend since May is considered successful. Other than the T1 line, support for the KLCI is the 1089 WinChart Automatic Fibonacci Retracement, while the resistance is at 1140, which is the 23.6% retracement of the WinChart Automatic Fibonacci Retracement, as well as the Bollinger Middle Band dynamic resistance.

As shown on the chart above, the Bollinger Bands Width is still contracting, suggesting that the KLCI is now consolidating. Generally, the Bollinger Bands Width has to re-expand to suggests a beginning of a new movement, and the direction would be determined by the position of the Bollinger Middle Band.

As indicated by B, total market volume declined 7.9%, and the market volume managed to stay above the 40-day VMA level; this suggests that the current market participation is still sufficient, which is a positive sign for the KLCI.

As circled at C, the MACD histogram is still showing a rounding top, suggesting the KLCI short term is still weakening, thus a short term correction. It is a good idea to monitor the changes of the MACD histogram, for if the MACD histogram should tick up and form a rounding bottom, it would be the end of the short term correction.

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