As indicated by A, the KLCI rebounded 0.4% on Thursday, but still below the Bollinger Middle Band dynamic resistance. Although the KLCI is still below the Bollinger Middle Band, the Bollinger Bands Width is still contracting, suggesting that the KLCI is still consolidating.

As shown on the chart above, 887 WinChart Automatic Fibonacci Retracement is still the resistance for the KLCI while the supports are still seen at 869 and 853 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume increased 5.7%, but still below the 40-day VMA level. This shows that the market participation is still quiet, as investor are still staying on the sidelines amid unclear market direction.

As circled at C, the Stochastic rebounded from the 30% level, continue it technical rebound signal. The Stochastic may react sensitively for this quiet normal as the Bollinger Bands Width is contracting.

In short, the KLCI has not entered the short term bearish region while still consolidating; and the new direction of the KLCI can only be clearer once the Bollinger Bands Width re-expands.

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