As indicated by A, the KLCI broke below the L1 line of the Symmetrical Triangle, ended the day lower with a daily low touching the 869 WinChart Automatic Fibonacci Retracement before closing at 876.56 points, down 14.11 points. Therefore, the 869 WinChart Automatic Fibonacci Retracement is now the support for the KLCI, while the resistance is at the Bollinger Middle Band dynamic resistance and the 885 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width expanded 12% with the KLCI remained below the Bollinger Middle Band, and therefore, the immediate outlook for the KLCI is still bearish biased. The bearish biased view of the KLCI is expected to continue until the Bollinger Bands Width contracts again.

As indicated by B, total market volume increased 6% on Monday, with volume above the 40-day VMA level. This shows that the market is now actively participated. However, the increased of volume has resulted the drop of the KLCI, thus suggested some increased of selling pressure. If the KLCI should continue to drop with higher volume, the selling is expected to be stronger.

As circled at C, the Stochastic remained below 30% level, which is the short term bearish region. Provided that the Stochastic is still below 30% level, the short term market movement for the KLCI expected to be bearish biased.

After consolidated in the Symmetrical Triangle for nearly two months, the KLCI finally broke out below the Symmetrical Triangle and ended its consolidation. For now, readers can also monitor the Bollinger Bands signal for the next move. Unless the KLCI could break above the Bollinger Middle Band in the near future, the short term bearish outlook for the KLCI is still intact.

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