The KLCI opened higher on Wednesday, as lifted by the strong rebound of the Dow Jones Industrial Index as well as the regional markets. This is also the effect of the Hammer candlestick (with a long lower shadow).

However, the KLCI could not sustain the early gain, as the overall market sentiment is still weak, the KLCI closed 0.4% lower. Support for the KLCI is still at 800 mark while the resistance is still at 887 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width expanded 11%, if compared to the previous expansion rate, Wednesday's expansion rate is considered slowing down, suggesting a declined in the market volatility. Nevertheless, the KLCI has to take out the Bollinger Middle Band dynamic resistance first in order to break away from the immediate bearish region.

As indicated by B, total market volume is still falling, but still above the 40-day VMA level. Therefore, the overall market is still considered as actively traded.

Currently, the Stochastic is still below 30%, suggesting a short term bearish movement for the KLCI. Meanwhile, as indicated by C, the MACD line is still below the zero-level, suggesting the longer term movement for the KLCI is still weak.

Generally, the market is relatively active now, but the reliability of the 800 points support is highly dependable on the global market performances. Although more short term speculative trading are seen, the risk of short term trading is still relatively high.

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