As the regional market mostly ended lower, the KLCI was dragged 1.1% on Tuesday, breaking below the 920 level. As indicated by A, the KLCI rebounded precisely again on the Bollinger Middle Band, and the Bollinger Middle Band is still the dynamic support for the KLCI. Resistance for the KLCI is now 920 while the support is still at 900 psychological level.

As shown on the chart above, the Bollinger Bands Width contracted 9%, suggesting that the KLCI is still consolidating, while the market direction for the KLCI is still unclear.

As indicated by B, total market volume on Tuesday was 10.2% lower, but still above the 40-day VMA level. This shows that the overall market is still actively participated. If volume should continue to decline, it is still a typical characteristic of a consolidation market.

As indicated by C, the MACD histogram is still falling while no rounding bottom is sighted yet; this shows that the KLCI is still in a consolidation. To sum up, the direction for the KLCI is still unclear for now, and we shall have to wait until the expansion of the Bollinger Bands Width to determine the new movement for the KLCI.

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