As indicated by A, the KLCI pulled back as a form of technical correction after hitting above the 20-day Bollinger Upper band, and generally, the Bollinger Middle Band would be the target of the pull back. As shown on the chart above, since the Bollinger Middle Band is also very closed to the 900 level, and therefore, 900 point is still a support for the KLCI, while the resistance are seen at 934 and 972 WinChart Automatic Fibonacci Retracement.

Meanwhile, the Bollinger Bands Width only expanded 2% on Thursday, which is showing a sign of a possible contraction. If the Bollinger Bands Width should begin to contract, it would be a signal suggesting a consolidation for the KLCI.

As indicated by B, total market volume declined 47.4%, failing to break above the 40-day VMA level. As the KLCI is losing 1.8%, the thin volume on Thursday suggesting a rather mild selling pressure, and therefore, it is still a normal correction. But still, if the KLCI should attempt to resume its rally, volume above the 40-day VMA level is a must.

As circled at C, the Stochastic is now breaking below 70% level, leaving the short term bullish territory, and it is a signal suggesting a beginning of a technical correction. If the Stochastic should fall below 30% level, it would be a short term bearish signal. In short, if the Stochastic should return to above 70% level in the near future, the short term bullish signal is still intact.

The KLCI performance is still widely affected by the performance of the markets across the globe, and coupled with some profit taking activities, the KLCI is expected to consolidate for now, and the Bollinger Middle Band shall be an important support.

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