As the KLCI continues its sideways movement with a lower fluctuation, the Bollinger Bands Width contracted another 12% on Thursday, suggesting the consolidation of the KLCI continues. Again, the contraction of the Bollinger Bands Width is also implying that the KLCI is gearing up for a new movement, and therefore, it pays to monitor the Bollinger Bands closely.

Support for the KLCI is still at 800 points while the resistance remains at 887 WinChart Automatic Fibonacci Retracement. Meanwhile, the T1 and T2 downtrend channel remains intact, suggesting the KLCI is still trending down.

As indicated by B, total market volume declined 28%, and the volume is still below the 40-day VMA level. This shows that the market participation is still low, as most investor are still waiting on the sideways as the market direction is still unclear.

As circled at C, the Stochastic is still situated below 30% level, which is the short term bearish region. If the Stochastic should break above 30% level together with the KLCI breaking above the Bollinger Middle Band, it would be a signal suggesting a chance for the KLCI to regain its strength.

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