On Wednesday, the KLCI continued its decline, breaking below the 887 WinChart Automatic Fibonacci Retracement level, and therefore, the 887 WinChart Automatic Fibonacci Retracement is now the immediate resistance line for the KLCI, while the next support is at 860 and 853 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width expanded 17% on Wednesday, with the KLCI below the Bollinger Middle Band. Therefore, the bearish biased movement of the KLCI remains intact. If the Bollinger Bands Width should contract, it would be a signal suggesting a consolidation for the KLCI.

As indicated by B, total market volume declined 2.5%, and still remain below the 40-day VMA level, suggesting that the overall market participation is still low. With the market lightly participated, the KLCI is less like to regain its strength.

As circled at C, the Stochastic rebounded after hitting 0% level, and about to cross above the %D line. If the %K line crosses above the %D line, it is usually implying a technical rebound is likely to take place. But still, the Stochastic has to break above the 30% level to signal a beginning of a technical rebound. To sum up, the immediate outlook for the KLCI is still bearish biased, despite a slightly implication of a possible technical rebound from the Stochastic.

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