As indicated by A, the KLCI remains below the Bollinger Middle Band as the Bollinger Bands Width expanded 21% on Monday, therefore, the KLCI bearish movement continues, ended 1.3% lower. As long as the Bollinger Bands Width should continue to expands, more downside movement for the KLCI is expected. If the Bollinger Bands Width should contracts again, it would be a signal suggesting a consolidation for the KLCI. Support for the KLCI is still at 800 WinChart Automatic Fibonacci Retracement while the resistance is still at 887 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the KLCI is still trending in the downtrend channel of T1 and T2 lines, and therefore, unless a valid break out above the T1 line, the outlook shall remains bearish biased.

As indicated by B, total market volume declined 34.8%, and volume is still below the 40-day VMA level, suggesting a rather quiet trading day. As long as the volume should stay below the 40-day VMA level, chances for the KLCI to pick some strength would be low. But still, as KLCI is falling with rather lower volume, it implies that the selling pressure was not tremendous.

As circled at C, the Stochastic is still falling while breaking below 10% level, which entered a short term over-sold region. This suggests the current movement for the KLCI is indeed weak, but might have started to gone over-sold. Therefore, there might be a chance of a technical rebound in the near future. But still, as long as the Stochastic is below 30% level, the market movement for the short term is still bearish biased.

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