As circled at A, the KLCI continue to consolidate above the 200-day MA, closing 1.77 point lower on Tuesday. With the KLCI remain resisted by the 972 WinChart Automatic Fibonacci Retracement, there are some profit taking activities, but no signs of panic selling.

Meanwhile, the Bollinger Bands Width expanded 2%, which is too insignificant to signal any bullish signal for the KLCI. Nevertheless, supports for the KLCI remain at 937 WinChart Automatic Fibonacci Retracement, Bollinger Middle Band dynamic support, as well as the T1 uptrend line.

As indicated by B, total market volume increased 34.2% on Tuesday, while still above the 40-day VMA level. This suggests that the market participation is still positive, and it is likely to maintain the current positive market sentiment. Therefore, if volume should continue to increase, it would help the KLCI in testing the 972 overhead resistance.

As circled at C, the MACD histogram is still falling while showing a rounding top. Therefore, this suggests that the KLCI short term is still consolidating; until the MACD histogram should form a rounding bottom, the consolidation is expected to continue.

Due to the overnight fall of the Dow Jones Industrial Average, coupled with the Asian markets are having their correction, the KLCI continued its consolidation at the 200-day MA level. With the KLCI still above the Bollinger Middle Band, the immediate outlook for the KLCI is still positive biased. Therefore, if the Bollinger Bands Width should re-expand with significant increased of volume, it would be a signal suggesting the KLCI is resuming its rally, thus a chance to break above the 972 level.

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