As indicated by A, the KLCI dropped 14.79 points or 1.6% on Friday, and now getting closer to the 900 psychological mark, and it is likely to see some rebound around the 900 level; resistance for the KLCI is at 965 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands Width is still expanding (5%), with the KLCI remains below the Bollinger Middle Band. Therefore, the bearish biased outlook for the KLCI remains intact unless the Bollinger Bands Width should start to contract. For the time being, the Bollinger Middle Band shall serve as the dynamic resistance for the KLCI and it is the first target that the KLCI must break above in order to break away from the downtrend.

As indicated by B, total market volume declined 35.1%, but volume is still above the 40-day VMA level. This shows that the market is well-participated. If the KLCI should rebound with volume above the 40-day VMA level, it would be a positive signal for the KLCI.

As circled at C, the Stochastic is still falling while almost touching 0%, this shows that the short term movement for the KLCI is indeed bearish but has gone over-sold. Therefore, there is a chance for a technical rebound in the near future. If the Stochastic should break above 30% level, it would be a signal suggesting a beginning of a technical rebound.

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