As indicated by A, the KLCI is still supported by the Bollinger Middle Band, which is the dynamic support for the KLCI. Resistance for the KLCI is still at 920 WinChart Automatic Fibonacci Retracement while the support is still at 900 psychological level.

As shown on the chart above, the Bollinger Bands Width contracted 19%, suggesting that the consolidation of the KLCI is still intact, until the Bollinger Bands Width should re-expand. If the KLCI should break below the Bollinger Middle Band, the immediate outlook for the KLCI shall turn to bearish biased.

As indicated by B, total market volume declined 12%, but still above the 40-day VMA level, suggesting that the overall market is still well-participated. Still, if volume should continue to decline, it is still a normal sign as the KLCI is still consolidating.

As circled at C, the Stochastic is breaking below the 70% level marginally, suggesting that the KLCI is consolidating. If the Stochastic should return to above 70% level, it would be the signal suggesting the end of the consolidation, and the KLCI is likely to resume its short term bullish biased movement. To sum up, we still need to wait until the Bollinger Bands Width expands to determine the next movement of the KLCI.

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