As indicated by A, the KLCI attempted to retest the T1 downtrend line but remained resisted by the T1, ended the day 1.78 points lower. This shows that the T1 is still the dynamic resistance for the KLCI. Support for the KLCI remains at 1065 and the 1035 WinChart Automatic Fibonacci Retracement while the resistance are 1089 followed by the 1121 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands Width expansion is now reduced to 2%, suggesting that the KLCI downside volatility is gradually declining. Nonetheless, the KLCI first has to break above the Bollinger Middle Band to have a better chance to regain its strength.

As indicated by B, total market volume shrink 13.1% on Thursday, and the volume is still staying below the 40-day VMA level. Therefore, this suggests that the overall market is lightly participated, thus the KLCI is likely to stay sideways.

As indicated by C, the MACD histogram almost stop falling, and is about to form a rounding bottom. If the MACD histogram should form a rounding bottom, it would be a signal suggesting a possible technical rebound for the KLCI.

In short, with market volume below the 40-day VMA level, the KLCI is less likely to pick up any strength despite a sign of a technical rebound.

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