On Wednesday, the Bollinger Bands Width of the KLCI contracted 2%, suggesting a lower in its volatility, thus implying a consolidation for the KLCI, the KLCI ended 3.81 points lower. However, the KLCI is still below the Bollinger Middle Band, therefore, the immediate outlook is still cautiously bearish biased. Therefore, breaking above the Bollinger Middle Band is a must for the KLCI.

Support for the KLCI is still at 800 mark while the 887 WinChart Automatic Fibonacci Retracement is still the resistance for the KLCI. Still, according to the chart, the KLCI is still in the downtrend channel, and therefore, the downtrend remains intact.

As indicated by B, total market declined another 22.2%, and the volume remains below the 40-day VMA level. This suggests that the overall market participation is relatively low as investors are still on the side lines. Nevertheless, the lower volume is usually typical for the KLCI is still consolidating.

As circled at C, the Stochastic is still below 30% level, in which the short term bearish signal remains intact. In short, unless the Stochastic could break above 30% level successfully, the market movement for the short term is likely to be bearish biased. If the Stochastic should also break above 70% level, it would be a short term bullish signal for the KLCI.

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