As shown on the chart, the Bollinger Bands Width expanded another 22%, as the KLCI staying below the Bollinger Middle Band, therefore, the downside movement for the KLCI continued. Meanwhile, the KLCI also breaks below the 1035 WinChart Automatic Fibonacci Retracement, and in short, the KLCI has to return to above the 1035 level, or else, the downside risk remains intact for the KLCI. (Study A)

Generally, provided the KLCI remains below the Bollinger Middle Band, the expansion of the Bollinger Bands Width suggests an increase of downside volatility, therefore, the downside movement for the KLCI is likely to continue until the Bollinger Bands Width contracts, which would suggests a consolidation of the KLCI.

As indicated by B, total market volume remains low, as volume stays below the 40-day VMA level. Therefore, as long as the market participation is still low, the KLCI is expected to stay weak.

As indicated by C, the MACD histogram breaks below the zero level, suggesting a bearish MACD signal. Nevertheless, provided the MACD histogram is still falling, the KLCI is expected to stay weak, until the MACD histogram should form a rounding bottom. On the other hand, the Stochastic remains below 30% level, and the market movement for the short term is still weak, unless the Stochastic should break above the 30% level.

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