As indicated by A,, the Bollinger Bands Width continue to contract, suggesting that the KLCI is still consolidating, closing only 0.1% lower on Friday. As long as the Bollinger Bands Width is still contracting, the consolidation of the KLCI is expected to continue, while the market direction remains unclear.

As shown on the chart above, support for the KLCI remains at 887 WinChart Automatic Fibonacci Retracement while the resistance is still at 900 psychological level as well as the Bollinger Middle Band dynamic resistance.

As indicated by B, total market volume declined 9.4%, but the volume is still above the 40-day VMA level, suggested that the overall market is still well-participated. If volume should continue to decline while the KLCI consolidate, it is still considered normal.

As circled at C, the Stochastic is breaking below the 30% level, entering the short term bearish region. If the Stochastic should continue to stay below 30% level, the market movement for the short term is likely to be bearish biased.

To sum up, the performance of the KLCI is sensitive to the performance of major markets across the globe, but still the KLCI is only consolidating for the moment, as the Bollinger Bands Width has not shown any bearish signal.

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