As indicated by A, the KLCI moved sideways with the T1 is still being the current support while the Bollinger Middle Band is the immediate dynamic resistance. Basically, the KLCI is currently moving in a narrow range between the Bollinger Middle Band and the T1 line. Nevertheless, support for the KLCI is still at 1064 point and the 1035 WinChart Automatic Fibonacci Retracement, while the resistance is at 1089 and 1211 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands Width further contracted 18%, suggesting that the KLCI is still consolidating. In other words, the contraction of the Bollinger Bands Width also means that the KLCI is gearing up for a new movement, and the direction of the new movement shall be revealed when the Bollinger Bands Width re-expands. If the KLCI should stay above the Bollinger Middle Band as the Bollinger Bands Width expands, it would be a signal suggesting a upward biased movement.

As indicated by B, total market volume is still low as the volume is still below the 40-day VMA level. If the KLCI should consolidate with low market volume it would be considered a normal. However, if the KLCI should starts rally again, volume above the 40-day VMA level is a must to sustain the rally.

As circled at c, the MACD histogram continue rising, while showing the rounding bottom signal. This shows that the short term movement for the KLCI is still improving, thus a chance for a technical rebound. The short term improvement is expected to continue until the MACD histogram starts falling and forming a rounding top.

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