As indicated by A, the KLCI remains in the downtrend channel of T1 and T2 lines, closing 8.58 points lower on Friday. Support for the KLCI remains at 800 mark, which is the psychological support level, while the resistance is still at 887 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands Width expanded 13% as the KLCI fell 1%, although the expansion of the Bollinger Bands Width is still not significant, the immediate outlook for the KLCI is still cautiously bearish biased, for the KLCI is still below the Bollinger Middle Band. If the Bollinger Bands Width should continue to expand, more downside risk is expected for the KLCI.

As indicated by B, total market volume increased 8%, but still further below the 40-day VMA level. Again, this shows that the overall market participation is still low, which is typically normal as the KLCI is basically still moving sideways.

As circled at C, the Stochastic fell below to 0% level again on Friday, which signaled a short term over-sold signal. Nevertheless, as long as the Stochastic is still below 30% level, the short term market movement of the KLCI is still bearish biased.

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