As indicated by A, the KLCI rebounded after forming a long lower shadow candlestick on Monday, closing 8.65 points higher to 918.16 points. However, the KLCI traded in narrow range on Tuesday, forming a narrow candlestick which suggested an unclear direction.

Support for the KLCI is still at 900 psychological mark while the resistance is at 953.5 WinChart Automatic Fibonacci Retracement (23.6% Retracement). As shown on the chart, the Bollinger Middle Band is still the dynamic resistance for the KLCI, and breaking above the Bollinger Middle Band is a crucial if the KLCI was to regain its strength.

Meanwhile, the Bollinger Bands Width contracts 7%, which suggests a consolidation signal for the KLCI, the consolidation is expected to continue if the Bollinger Bands Width should continue contracting.

As indicated by B, total market volume declined 8.4%, but still maintain above the 40-day VMA level, suggesting that the overall market participation is still healthy, which is a positive sign for the KLCI.

As circled at C, the Stochastic is testing the 30% level, which is a sign of a possible technical rebound. If the Stochastic should successfully breaking above 30%, it would be a signal suggesting a continuation of the technical rebound.

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