As indicated by A, the KLCI ended 4.36 points higher on Thursday, breaking above the Bollinger Middle Band. Support for the KLCI remains at 885 WinChart Automatic Fibonacci Retracement while the resistance is still at 905 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the KLCI is still fluctuating between the L1 and L2 Symmetrical Triangle, while the Bollinger Bands Width also contracted, this suggests that the KLCI is still consolidating.

As indicated by B, total market volume increased 10.3% on Thursday, but still below the 40-day VMA level. This shows that the overall market participation is still low, thus the KLCI is less likely to pick up any strength.

As circled at C, the Stochastic rebounded and returned to above 70% level. If the Stochastic should remain above 70% level, the KLCI might resume its short term bullish movement. Nevertheless, the short term bullish movement of the KLCI has to be confirmed with volume above the 40-day VMA level, or else, the Stochastic signal may just be over sensitive for now.

Technically, when the Bollinger Bands Width is contracting, the KLCI is expected to consolidate until a re-expansion of the Bollinger Bands Width . The new movement of the KLCI shall only be revealed by the position of the KLCI above or below the Bollinger Middle Band as the Bollinger Bands Width re-expands. Also, a breakout above or below t he symmetrical triangle would be a reliable signal for the new KLCI movement.

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