As indicated by A, the KLCI is still resisted by the Bollinger Middle Band dynamic resistance, while the support for the KLCI is still seen at 1064 WinChart Automatic Fibonacci Retracement, and the next support will be at 1035 WinChart Automatic Fibonacci Retracement. Other than the immediate resistance at the Bollinger Middle Band, the 1100 psychological level and the 1120 WinChart Automatic Fibonacci Retracement are the resistance.

As shown on the chart above, the Bollinger Bands Width opened 3%, which is still insignificant, and therefore, this shows that the KLCI is still consolidating while the direction for the KLCI remains unclear. Nevertheless, if the Bollinger Bands Width should expand further with the KLCI situated below the Bollinger Middle Band, it would be a bearish signal for the KLCI.

As indicated by B, total market volume increased 18.5%, but still below the 40-day VMA level, and therefore, the market participation is still low and the KLCI is likely to continue its consolidation.

As circled at C, the Stochastic is still staying below the 30% level, suggesting that the market movement for the short term is still bearish biased. The bearish biased movement is expected to continue until the Stochastic should break out above the 30% level.

Generally, the direction for the KLCI is still unclear as uncertainties in local issues and the regional markets performances, therefore, the KLCI is still consolidating. Nevertheless, short term indicator is suggesting a weakening movement for the KLCI, and therefore, if the Stochastic should break above the 30% level again, it would be a signal suggesting a beginning of a technical rebound, and the KLCI might have a chance to regain some lost ground, other wise, the bearish biased movement remains intact.

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