As indicated by A, the KLCI breaks below the T1 line by margin, suggesting that the KLCI might fail to hold up above the T1 support line. Nevertheless, if the KLCI should return to above the T1 line by next week, there is still a chance for the KLCI to break out the downtrend. Support for the KLCI remains at 1089 WinChart Automatic Fibonacci Retracement while the resistance is still seen at 1140 (23.6% retracement of the WinChart Automatic Fibonacci Retracement)

As shown on the chart, the Bollinger Bands Width expanded another 19%, with the KCLI staying below the Bollinger Middle Band, and therefore, suggesting that the immediate movement for the KLCI is still bearish biased. Unless the Bollinger Bands Width should contract, the Bollinger Middle Band is now serving as the dynamic resistance for the KLCI.

As indicated by B, total market volume declined another 12.5%, and therefore, the volume remains below the 40-day VMA level. This suggests that our market participation is still low, and therefore the KLCI is likely to stay weak or sideways.

As circled at C, the Stochastic is still staying below the 30% level, and therefore, the short term bearish signal remains intact, suggesting that the market movement for the short term is still bearish biased. The bearish biased signal is expected to continue until the Stochastic should break out the 30% level.

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