As indicated by A, the KLCI failed test the Bollinger Middle Band resistance and continue its weakening movement. Support for the KLCI remains at 900 psychological mark, while the resistance is at 953.5 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the KLCI is still trending down within the T1 and T2 downtrend channel, and unless the KLCI should break above the T1 downtrend resistance with positive sentiment, the outlook for the KLCI shall remains bearish biased.

In addition, the Bollinger Bands Width contracted another 12% on Wednesday, suggesting the KLCI is still consolidating. Still, with the KLCI situated below the Bollinger Middle Band, the immediate outlook for the KLCI is still negative biased.

As indicated by B, total market volume declined 5.6%, suggested some lower participation in general, but still, volume remain above the 40-day VMA level, as short term speculative trading continues.

As circled at C, the Stochastic is still below 30%, and therefore, the short term bearish signal is still in place, suggested the market movement for the short term is still weak. Again, the Stochastic has to break above 30% level in order to signal a beginning of a technical rebound.

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