The KLCI gained marginally on Tuesday as the overnight Dow Jones Industrial Average rebounded. However, as indicated by A, the KLCI is still resisted by the 869 WinChart Automatic Fibonacci Retracement, and therefore, the 869 WinChart Automatic Fibonacci Retracement is still the resistance for the KLCI, while the support is still at 853 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the KLCI pull-back after being over-sold. Usually, the target of the pull-back effect is the Bollinger Middle Band, but if the KLCI should remain resisted by the Bollinger Middle Band, it means that the bearish movement of the KLCI is still intact.

As indicated by B, total market volume increased 16.6%, but still below the 40-day VMA level. This shows that the market participation is still relatively insufficient. Therefore, the KLCI is likely to consolidate with a bearish biased movement.

As circled at C, the Stochastic rebounded on Thursday after touching 10% level, but still, the Stochastic is staying below the 30% level, and the short term bearish movement remains in place for the KLCI.

Although the KLCI has started its pull-back effect, it is merely a form of technical rebound if the KLCI should stay below the Bollinger Middle Band. If the Bollinger Bands Width should contract, it would suggest another consolidation for the KLCI.

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