As indicated by A, the Bollinger Bands Width contracted 8% on Wednesday, suggesting the KLCI is likely to consolidate. If the KLCI should consolidate, the Bollinger Middle Band is usually the first target of the consolidation or correction. Nevertheless, the Bollinger Middle Band and the T1 line are still the dynamic support for the KLCI, together than the 937 immediate support level, while the resistance is still at 972 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume increased another 16.4%, this shows that the current market is indeed active, thus suggesting a better confidence of investors. Nevertheless, should the KLCI consolidate, volume would be slightly reduced. Provided that the volume is still above the 40-day VMA level, the current positive market sentiment is expected to continue.

As indicated by C, the MACD histogram started to fall on Wednesday, suggesting that the MACD histogram might be forming a rounding top. If the MACD histogram should form a rounding top, it would be a signal suggesting a short term technical correction or a consolidation for the KLCI, and the short term movement of the KLCI is likely be slightly weaker, until the MACD histogram should form a rounding bottom.

The Bollinger Bands Width started expanding since 2nd of April, and until today, it is its first time to contract. The contraction of the Bollinger Bands Width also suggesting that the KLCI is preparing for a new movement, and the new movement shall only be revealed when the Bollinger Bands Width re-expands. Nevertheless, with the KLCI still supported by t he Bollinger Middle Band, the immediate outlook is still bullish biased, and based on the current market condition, the KLCI is likely to take a minor pause before resuming its uptrend movement.

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