As indicated by A, the KLCI is still testing the T1 downtrend line, ended the day with a Doji candlestick pattern; this suggests a minor reversal signal. Nevertheless, as long as the KLCI is still supported by the T1 line, there is a chance for the KLCI to test the 1140 WinChart Automatic Fibonacci Retracement line. Other than T1, the next support for the KLCI is at 1089 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands Width expanded slightly with the KLCI below the Bollinger Middle Band, and therefore, showing some bearish biased signal. Nonetheless, if the KLCI should return to above the Bollinger Middle Band in the near term, the bearish biased signal is still insignificant.

As indicated by B, total market volume declined 19.6%, and therefore, the market volume is back to below 40-day VMA level. In short, this suggests that the market participation is insufficient, which is also implying that the investors are still not confident with the current market condition. Nevertheless, if the KLCI should attempt to regain some ground, it must confirm with the increase of volume to sustain the rally.

As circled at C, the Stochastic is below the 30% level, suggesting a short term bearish signal. Readers can monitor the Stochastic, for if the Stochastic should break above the 30% level, it would be a beginning of a technical rebound, thus an improvement signal for the KLCI.

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