On Tuesday, the KLCI lost 14.42 points to close at 965.70 points, breaking the Bollinger Middle Band as well as the 973 WinChart Automatic Fibonacci Retracement support. Therefore, the resistance for the KLCI is still at 993 and 1000 psychological level, while the support is at 959 WinChart Automatic Fibonacci Retracement and the 200-day Moving Average line.

Meanwhile, the Bollinger Bands Width contracted 20% on Tuesday, suggesting the KLCI is still having its technical correction. Nevertheless, since the 959 WinChart Automatic Fibonacci Retracement is very closed to the 200-day MA level, it is likely to be a reliable support for the KLCI.

As indicated by B, total market volume declined 25.9%. The decline of volume is typical during the consolidation of technical correction. This is because while the market is still taking a pause with uncertainties, most investors are staying on the sidelines. However, total market volume is still above the 40-day VMA level, which is an important ingredient if the KLCI were to maintain its uptrend.

As circled at C, the Stochastic breaks below 70% as well as 50% level, suggesting the short term bullishness has ended, and a technical correction stage for the KLCI. If the Stochastic should continue to decline and breaks below 30% level, the short term movement for the KLCI is expected to be on the weaker side.

For now, the KLCI is still under its technical correction stage while the uptrend has not been violated. However, the fluctuation of the KLCI for this two days has been high, which is usually not the most healthy type of technical correction. Anyhow, if the KLCI should rebound from the 200-day MA, there is a good chance for the KLCI to resume its uptrend; other wise, if the KLCI should break below the 200-day MA, it would have ended the current uptrend, and more downside risk for the KLCI can be expected.

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