As indicated by A, the KLCI retreated on Tuesday after temporary resisted by the Bollinger Upper Band, closing 13.51 points or 1.2% lower. Nevertheless, with the KLCI still staying above the Bollinger Middle Band, the immediate outlook for the KLCI is still positive biased.

As shown on the chart, the Bollinger Bands Width contracted 9%, suggesting that the KLCI is still consolidating, this also means that the KLCI is gearing up for a new direction, while the new direction shall be revealed once 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 bullish signal, on the other hand, if the KLCI should stay below the Bollinger Middle Band when the Bollinger Bands Width expands, it would be a bearish signal.

Support for the KLCI is still at 1064 and 1035 WinChart Automatic Fibonacci Retracement while the resistance is at 1100 psychological level and the 1120 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume declined 37.8% on Tuesday, and the volume failed to sustain above the 40-day VMA level. Nevertheless, if market volume should resume its position above the 40-day VMA level, the KLCI improvement is likely to continue.

As circled at C, the Stochastic retreated on Tuesday after hitting 100% last Friday, this is a normal reaction for if the Stochastic touched 100%, it is usually an over-heated signal and a technical correction is likely to take place. Nevertheless, the Stochastic has remain above the 70% level in order to sustain the short term bullish signal.

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