As indicated by A, the KLCI ended lower on Thursday as poor performance across regional markets, and the KLCI managed to rebound slightly after hitting T2 downtrend dynamic support. Generally, as shown on the chart, the downtrend channel of T1 and T2 remains intact.

Support for the KLCI is at 880 points while the resistance is still at 900 psychological mark followed by 950 WinChart Automatic Fibonacci Retracement. Meanwhile, the Bollinger Middle Band is still the dynamic resistance for the KLCI, and as long as the KLCI is still resisted by the Bollinger Middle Band, the immediate outlook for the KLCI is still bearish biased.

As shown on the chart, the Bollinger Bands Width expands 2%, with the KLCI below the Bollinger Middle Band. Therefore, if the Bollinger Bands Width should continue to expands, more downside risk for the KLCI is expected.

As indicated by B, total market volume increased 13.5%. Since the KLCI ended lower, the higher market volume actually suggested an increased of selling pressure.

As circled at C, the Stochastic remains below 30%, which is the short term bearish region. Therefore, this suggests that the market movement for the short term is still weak. If the Stochastic should touch 0%, it would be a signal suggesting an over-sold condition for the KLCI, thus a technical rebound is likely to take place. But, still, the market movement for the short term is still bearish biased.

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