As lead by positive news of the US market, the Asian markets are closing broadly higher on Monday, but the KLCI only managed to add 5.39 points, suggesting that investors are still being cautious of the local political issues. As indicated by A, despite the margin increase of the KLCI, it is still below the Bollinger Middle Band, and the Bollinger Middle Band is still the dynamic resistance for the KLCI.

Support for the KLCI remains at 1064 level while the 1100 psychological level and the 1120 WinChart Automatic Fibonacci Retracement are still the resistance for the KLCI. Meanwhile, the Bollinger Bands Width contracted 3%, suggesting that the KLCI is still consolidating.

As indicated by B, total market declined 21%, while staying below the 40-day VMA level, therefore, the market participation is still weak, despite strong rebound across the Asian markets.

As circled at C, the WinChart RSI rises slightly but below the 50% level. If the WinChart RSI should break above the 50% level, the KLCI would have a better chance to regain its strength.

Although the KLCI performance on Monday was rather a disappointment, it is, nevertheless, still a healthy consolidation. Therefore, the Bollinger Bands Width is still the indicator to monitor at the moment for if the Bollinger Bands Width should expands, it would be an end to the consolidation. In addition, the Stochastic is another sensitive indicator to monitor; if the Stochastic should break above the 70% level, it would suggests a short term bullish movement for the KLCI.

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