As indicated by A, the KLCI ended slightly lower despite most Asian markets ended higher. Meanwhile, the Bollinger Bands Width contracted another 15%, suggesting the KLCI is still consolidating, and if the KLCI should return to its positive territory, breaking above the Bollinger Middle Band is imperative.

Other than the Bollinger Middle Band dynamic resistance line, the 887 WinChart Automatic Fibonacci Retracement is still the resistance for the KLCI; while the other supports are still at 869 and 853 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume declined 0.8%, and as a result, the volume is still below the 40-day VMA level. This, once again, showing that the overall market participation is indeed insufficient, thus the KLCI is likely to consolidate.

As circled at C, the Stochastic is touching the 30% level, and if the Stochastic should break below 30% level, it would be entering the short term bearish region; and therefore, if the Stochastic should remain below 30% level, the market movement for the short term is expected to be bearish biased.

Despite some short term bearish biased view, the KLCI is still at its consolidation, while preparing for a new movement; and the direction of the new movement will only be determined once the Bollinger Bands Width re-expands.

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