As indicated by A, the KLCI ended slightly lower on Wednesday, while still supported by the T1 downtrend line, which is also the 1065 WinChart Automatic Fibonacci Retracement support level, and therefore, this has slightly increase the support strength. Nevertheless, the next support for the KLCI is at 1035 WinChart Automatic Fibonacci Retracement while resistance remain at 1089 followed by the 1121 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width contracted 12%, which suggests that the KLCI is still consolidating. Again, the KLCI tested the Bollinger Middle Band but failed to break above the it, and therefore, the Bollinger Middle Band is also the dynamic resistance for the KLCI.

As indicated by B, total market volume increased 4.6%, but remain below the 40-day VMA level, implying that the market volume is still considered low. Therefore, the KLCI is likely to consolidate with the low market participation.

While the KLCI is consolidating, the MACD histogram is about to form a rounding bottom, as indicated by C, and therefore, suggesting a possible technical rebound signal or a short term improvement for the KLCI. If the MACD should break above the zero line, it would suggests that the KLCI is breaking above the downtrend.

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