As indicated by A, the KLCI failed to sustain its early gain, closing precisely above the 805 WinChart Automatic Fibonacci Retracement and the L1 of the Symmetrical Triangle dynamic support. Resistance for the KLCI remains at 905 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width is still contracting 20%; therefore, the consolidation of the KLCI is expected to continue until the Bollinger Bands Width re-expands or the KLCI breaking out of the Symmetrical Triangle.

As indicated by B, total market volume declined 14.1%, and therefore, continue to stay below the 40-day VMA level. This shows that the market participation is still low, as investors are still staying on the sidelines. Nevertheless, a lower volume during a consolidation is considered normal.

As circled at C, the Stochastic is still below 30% level, which is the short term bearish region. If the Stochastic should continue staying below this level, the short term market movement for the KLCI is likely to be bearish biased.

With the Dow Jones Industrial Average moving in downtrend, together with no fresh lead in the local market, the KLCI is expected to consolidate further. However, with the KLCI near to the tip of the Symmetrical Triangle, the KLCI is expected to break out of the Triangle in near future. If the KLCI should break out from the Symmetrical Triangle, it is a good idea to combine the Bollinger Bands signals to monitor the new movement of the KLCI.

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