As the Dow Jones Industrial Average ended sharply lower due to negative economic figures, the Asian markets also ended lower, and as a result, the KLCI also broke below the Bollinger Middle Band, which is an important support level. (As indicated by A). Therefore, this has temporary ruined the possible bullish signal of the Bollinger Bands Width.

Nevertheless, the Bollinger Bands Width only expanded 2%, which is insignificant. If the KLCI should return to above the Bollinger Middle Band in the near future, there is still a chance for the KLCI to resume its positive movement. Still, based on the current situation, the KLCI is more likely to move sideways, as it could avoid massive selling pressure, and help retain market confidence.

As shown on the chart, support for the KLCI is still at 1064 level, which the next support is seen at 1035 WinChart Automatic Fibonacci Retracement; resistance for the KLCI is still at 1100 psychological level followed by the 1120 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume increased 23.3% despite the KLCI losing 1.3%, which suggests some increase of selling, which could means some bargain buying as well. Nevertheless, total market volume is still below the 40-day VMA level.

As circled at C, the MACD histogram formed a rounding top, which is a signal suggesting a weakness of the KLCI short term movement, thus a technical correction is likely to take place, or even an end to the MACD bullish signal. Nevertheless, as long as the MACD histogram is still falling, the KLCI short term movement is likely to stay weak.

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