As indicated by A, the KLCI had an intra-day low reaching 848.34 points before closing at 855.25 points. As a result, the KLCI formed a candlestick with a relatively long lower shadow line, thus suggested some bargain hunting activities. Generally, this is a candlestick suggesting a possible technical rebound.

Support for the KLCI is still at 853 WinChart Automatic Fibonacci Retracement while the resistance is at 869 WinChart Automatic Fibonacci Retracement. Meanwhile, the Bollinger Bands Width has not contracted, therefore, the immediate outlook for the KLCI is still bearish biased.

As indicated by B, total market volume increased 31.8% on Tuesday, but still below the 40-day VMA level. This shows that the market participation is still insufficient as investors are still being cautious while waiting on the sidelines.

As circled at C, the Stochastic rebounded slightly after entering below 10%, which is a short term over-sold signal. Therefore, the KLCI is likely to have a technical rebound. Nevertheless, the Stochastic has to break above 30% level in order to signal a beginning of the short term technical rebound.

Despite having a chance of a technical rebound, the KLCI is still below the Bollinger Middle Band. Therefore, if after the possible technical rebound, the KLCI still resisted below the Bollinger Middle Band, the bearish biased movement of the KLCI is still intact. Therefore, breaking above the Bollinger Middle Band with significant increased of volume is the most important signal, if the KLCI should break away from its bearish movement.

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