Despite the Dow Jones Industrial Average Index closing at its 12 year low, the KLCI rebounded 6.24 points after supported by the 885 WinChart Automatic Fibonacci Retracement and the L1 line. Therefore, the KLCI continued its consolidation within the Symmetrical Triangle, and the resistance for the KLCI is still at 905 WinChart Automatic Fibonacci Retracement. (Study A)

As shown on the chart above, the Bollinger Bands Width only expanded 2%, and therefore, the signal is insignificant. Nevertheless, if the Bollinger Bands Width should expand significantly, it would be a signal suggesting a beginning of a new movement for the KLCI.

As indicated by B, total market volume increased 6.3%, 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, and it is expected t continue its consolidation.

As circled at C, the Stochastic rebounded and broke above 30% level, as the KLCI closed higher at its daily high. Therefore, the Stochastic is now suggesting a beginning of a technical rebound. If the Stochastic should also break above 50% level, it would be a signal suggesting a continuation of the technical rebound.

In short, since the KLCI is getting closer to the tip of the Symmetrical Triangle, we shall only wait until the KLCI break out from the Symmetrical Triangle to show its new direction.

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