The KLCI lost 16.01 points on Thursday as led by lost of Dow Jones Industrial Average Index as well as the regional major indices. As indicated by A, the KLCI broke below the Bollinger Middle Band, as well as the important 900 level. Support for the KLCI is at 887 WinChart Automatic Fibonacci Retracement while the immediate resistance is at 900 level.

Despite the KLCI ended lower, the Bollinger Bands Width remains contracting, suggesting that the KLCI is still in its consolidation. However, if the Bollinger Bands Width should expands with the KLCI below the Bollinger Middle Band, more downside risk for the KLCI is expected.

As indicated by B, total market volume increased 32.8%, suggested some increased of selling pressure. However, the increased of volume also suggested some bargain buying, and therefore, we still have to wait until a clearer Bollinger Bands signal to determine the direction for the KLCI.

As circled at C, the MACD Histogram is still showing a rounding top, suggested that the KLCI is still consolidating with some weakening biased. The weakening movement is likely to continue until the MACD histogram should form a rounding bottom. In short, unless the KLCI could return to above the Bollinger Middle Band in the near future, the immediate outlook for the KLCI is turning weaker as it break below the Bollinger Middle Band.

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