As indicated by A, the KLCI broke marginally above the 200-day Moving Average line, closing 3.89 points higher to 965.17 points. However, the breakout is yet to be confirmed for the volume on Friday was significantly lower. Coupled with the KLCI is still resisted by the 972 WinChart Automatic Fibonacci Retracement, therefore, the breakout is not valid.

Support for the KLCI remains at 937 WinChart Automatic Fibonacci Retracement and the T1 uptrend line. Meanwhile, the Bollinger Bands Width only expanded 3% on Friday, failing to confirm any breakout signal of the KLCI.

As indicated by B, total market volume declined 48.5%, but still above the 40-day VMA level. This shows that the market is still actively participated despite the fall of volume; also, the lower volume during the KLCI consolidation suggests that there are no panic selling at the moment, thus a healthy consolidation signal, technically speaking.

As circled at C, the MACD histogram is still falling, while the rounding top is still visible. Therefore, this shows that the short term movement for the KLCI is still consolidating, until the MACD histogram should form a rounding bottom.

Despite the resistance at 972 level, the KLCI is still above the Bollinger Middle Band, and therefore, the immediate outlook for the KLCI is still bullish biased. If the KLCI should rebound from the Bollinger Middle Band with the Bollinger Bands Width re-expanding, it would be another bullish signal for the KLCI, thus the KLCI is likely to resume its current rally.

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