As indicated by A, the KLCI tested the Bollinger Middle Band and closed at the Bollinger Middle Band, up 2.44 points. Therefore, the KLCI continues its consolidation within the Symmetrical Triangle. Support for the KLCI is still at 885 WinChart Automatic Fibonacci Retracement while the resistance is still at 905 WinChart Automatic Fibonacci Retracement.

Meanwhile, the Bollinger Bands Width contracted 4%, suggesting that the KLCI is still consolidating. Generally, the consolidation is expected to continue until the Bollinger Bands Width re-expands.

As indicated by B, total market volume declined 3.3% on Wednesday, and therefore, it is still below the 40-day VMA level, suggesting that the overall market participation is still insufficient. Without sufficient market participation, the KLCI is less like to pick up any strength.

As circled at C, the Stochastic continue to rise on Wednesday, but failed to break above 50% level. This shows that the KLCI short term movement is still not turning bullish. Generally, the Stochastic has to break above 70% level, in order to signal a short term bullish signal.

Regional markets rebounded on Wednesday as lead by the rebound of the Dow Jones Industrial Average. However, the market is still lack of fresh lead, thus the KLCI is likely to continue its consolidation as investors are still staying on the sidelines.

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