As indicated by A, the KLCI ended another 6.25 points lower as the Asian markets decline, lead by Japan; as a result, the KLCI breaks below the T1 marginally. The KLCI must return to above the T1 immediately or the next target for the KLCI would be at 1089 WinChart Automatic Fibonacci Retracement, which is the support for the KLCI. If the KLCI should rebound from the 1089 WinChart Automatic Fibonacci Retracement, it would have a chance to form a Double Bottom, and the 1089 level is the last defense level for the KLCI. Resistance for the KLCI is still at 1140 WinChart Automatic Fibonacci Retracement.

Meanwhile, the Bollinger Middle Band is also a resistance for the KLCI. Generally, if the KLCI is situated below the Bollinger Middle Band, the immediate outlook is negative biased, and positive biased if the KLCI was to stay above the Bollinger Middle Band.

As indicated by B, market volume increased 14.7% but remain below the 40-day VMA level. This is still suggesting that the market participation is relatively low, thus the market is indeed quiet. Therefore, the KLCI is expected to stay in consolidation.

As circled at C, the Stochastic is still below the 30% level, which is in the short term bearish region. Nonetheless, readers can monitor the Stochastic for if the Stochastic should break above the 30% level, it would be a signal suggesting a beginning of a technical rebound.

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