As circled at C, the Stochastic has been staying below the 10% level for a few days, and therefore, suggesting an over-sold situation. On Wednesday, the KLCI rebounded slightly, which could be a signal suggesting a beginning of a technical rebound. Nonetheless, the Stochastic has to break above the 30% level in order to confirm the technical rebound.

As indicated by A, since the KLCI is still staying below the T1 line, the T1 line is still the dynamic resistance for the KLCI. Other than this, the Bollinger Middle Band is also another dynamic resistance for the KLCI. Support for the KLCI is at the 1065 WinChart Automatic Fibonacci Retracement followed by the 1035 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands Width expanded 11%, slightly smaller than Tuesday, and therefore, this could be a sign suggesting a consolidation or a technical rebound for the KLCI. Nevertheless, the KLCI has to break above the Bollinger Middle Band in order to break away from the bearish biased outlook, or else, any rebound below the Bollinger Middle Band would only be considered as technical rebound.

As indicated by B, total market volume declined 12.4%, but the KLCI ended slightly higher which lifted by some blue chip counters. However, the buying interest is still weak, and therefore, the market volume is still below the 40-day VMA level.

If the KLCI should continue its rebound with the increase of volume above the 40-day VMA level, it would lift the market sentiment, and the KLCI might have a chance to regain its strength.

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