As indicated by A, the Bollinger Bands Width expanded another 10% on Friday, with the KLCI remained below the Bollinger Middle Band, and therefore, the KLCI failed to consolidate, and ended lower. Support for the KLCI is at 823 WinChart Automatic Fibonacci Retracement while the resistance is at 869 WinChart Automatic Fibonacci Retracement as well as the Bollinger Middle Band dynamic resistance.

As indicated by B, total market volume declined 26%, with volume clearly below the 40-day VMA level. This shows that the market participation is indeed very low, coupled with the absence of positive sentiment, the KLCI movement is expected to remain weak.

As circled at C, the WinChart RSI fell below 30% level, entering the mid term bearish region. This suggests that the market sentiment for the mid term is now weak, and as long as the WinChart RSI is still below 30% level, the weakening KLCI movement is expected to continue.

With most of the markets across the globe performing negatively, the KLCI is expected to follow suit. Therefore, it would be highly risky to trade against the downside movement of the KLCI.

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