As indicated by A, the KLCI tested the 887 WinChart Automatic Fibonacci Retracement again on Tuesday, but remained resisted by the WinChart Automatic Fibonacci Retracement. Supports for the KLCI are still at 869 and 853 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the KLCI is now situated at the Bollinger Middle Band while the Bollinger Bands Width contracts. This shows that the direction of the KLCI is still unclear while the consolidating; therefore, we shall have to wait until the re-expansion of the Bollinger Bands Width.

As indicated by B, total market volume increased 2%, and still below the 40-day VMA level. This is still suggesting that the overall market participation is low as the market direction is still unclear.

As circled at C, the WinChart RSI rebounded after hitting the 30% level, suggesting that the mid term market strength for the KLCI is not yet bearish. If the WinChart RSI should break below 30% level, it would be a mid term bearish signal for the KLCI.

In short, the KLCI is likely to consolidate with some bearish biased, and the contraction of the Bollinger Bands Width is also implying a preparation of a new move and the direction of the new movement shall be revealed once the Bollinger Bands Width re-expands. 

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