As indicated by A, the KLCI rebounded on Friday, but still resisted by the 920 WinChart Automatic Fibonacci Retracement. Therefore, the 920 resistance is still intact while the 900 level is still the support level for the KLCI. Again, the Bollinger Middle Band is also the dynamic support for the KLCI.

As shown on the chart above, the Bollinger Bands Width only expanded 2%, which is rather insignificant; therefore, it is likely that the KLCI to continue its consolidation. Expansion of the Bollinger Bands Width has to be obvious in order to signal any direction for the KLCI.

As indicated by B, total market volume is still below the 40-day VMA level, suggesting that the overall market participation is low. Again, this is rather normal for the KLCI is at its consolidation stage. If the KLCI should resume its rally, total market volume has to break above the 40-day VMA level in order to confirm the rally.

As indicated by C, the Stochastic managed to return to above 70% level, and therefore, the short term bullish signal is still in place. Provided that the Stochastic could maintain above 70% level, the market movement for the short term is still bullish biased. In short, the KLCI is having its consolidation with lower volume, and the selling pressure is not extreme, therefore, as long as the KLCI is still supported with the Bollinger Middle Band, the immediate outlook is still positive.

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