As indicated by A, the Bollinger Bands Width expansion rate reduced from 15% to 2%, suggesting that the Bollinger Bands Width is likely to contract. If the Bollinger Bands Width should contract, it would be a signal suggesting a consolidation for the KLCI.

Nevertheless, the KLCI closed above the 885 WinChart Automatic Fibonacci Retracement, and therefore, the 885 level is now the immediate support, followed by the Bollinger Middle Band dynamic support, while the resistance is still at 900 psychological level.

As indicated by B, total market volume declined 20%, with volume still above the 40-day VMA level. This shows that despite the decline in volume, the market is still relatively well-participated. If the KLCI should consolidate, a lower volume during the consolidation is usually normal.

As circled at C, the Stochastic is still above 70% level, which is the short term bullish region. This shows that the short term movement of the KLCI has not turned negative. If the Stochastic should break below 70% level, it would suggests a beginning of a consolidation or technical correction for the KLCI.

Whenever the Bollinger Bands Width contracts, Secondary Indicators signals are usually over-sensitive. Therefore, during a consolidation, it is still a better idea to follow Primary Indicator like Bollinger Bands. Nevertheless, should the KLCI have a correction, its target will be at the Bollinger Middle Band dynamic support. If the KLCI should remained supported by the Bollinger Middle Band, there is still a chance for the KLCI to resume its positive movement after the consolidation or correction.

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