As indicated by A, the KLCI is still resisted by the Bollinger Middle Band, ended 8.23 points lower, and supported by the T1 downtrend line. Support for the KLCI remain at 1065 and 1035 WinChart Automatic Fibonacci Retracement, while the resistance are at 1089 and 1121 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands width contracted another 125, suggesting that the KLCI is indeed consolidating. The KLCI consolidation is expected to continue until the re-expansion of the Bollinger Bands Width. Until then, the direction of the KLCI would be determined by the position of the Bollinger Middle Band.

As indicated by B, total market volume declined 3.3%, and therefore, the market volume is still below the 40-day VMA level, suggesting that a lackluster market participation in the overall market. In other words, the market is lack of fresh leads, and therefore, the KLCI is less likely to pick up any strength.

As circled at C, the Stochastic is still below the 30% level, suggesting a short term bearish signal, and therefore, the short term market movement for the KLCI is likely to be bearish biased. If the Stochastic should break above the 30% level, it would be a signal suggesting a beginning of a technical rebound, but until that, the short ter outlook for the KLCI is still bearish biased.

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