As indicated by A, the KLCI retreated slightly on Tuesday, and failed to break the 900 level. Therefore, support for the KLCI is at 887 (23.6%WinChart Automatic Fibonacci Retracement).

As shown on the chart, the Bollinger Bands Width expands 0%, suggesting the KLCI is still consolidating while the direction for the KLCI remains unclear. Generally, if the Bollinger Bands Width should expands with the KLCI above the Bollinger Middle Band, it would be a positive signal.

As indicated by B, total market volume increased 11.5%, while still firmly above the 40-day VMA level. Therefore, this shows that the market is well-participated. In general, volume above the 40-day VMA level is usually a positive element for the KLCI performance.

As circled at C, the Stochastic is now touching 70% level. If the Stochastic should failed to rebound and return to above 70% level, it would end the short term bullish signal. Which means a beginning of a technical correction.

As shown on the chart, the Bollinger Middle Band is pointing upward, which implies that the current consolidation is likely to be bullish biased. But still, our local market performance is still widely affected by the performance of regional markets, and therefore, we have to monitor the performance of other world major indices.

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