As indicated by A, the KLCI touches the 200-day MA and rebounded, closing 1.76 points higher at 967.46 points. Therefore, supports for the KLCI are still at 200-day MA and 959 WinChart Automatic Fibonacci Retracement, while the resistance are still at 993 WinChart Automatic Fibonacci Retracement and 1000 mark.

Meanwhile, the Bollinger Bands Width contracted another 10% on Wednesday, suggesting that the KLCI is still in its technical correction stage, until the Bollinger Bands Width should re-expands.

As indicated by B, total market volume declined 32.8%, as the KLCI going through its technical correction. Nevertheless, should the KLCI attempt to resume its rally, volume has to increase significantly to confirm the bullish movement.

As circled at C, the Stochastic did not break below 30% level, suggesting that the KLCI is still having its technical correction but not yet turning bearish. If the Stochastic should return to above 70% level, the KLCI short term movement is expected to improve.

With the KLCI rebounding from the 200-day MA, this suggests that the KLCI has not turned bearish. If the KLCI should break above the Bollinger Middle Band, there is a chance for the KLCI to regain its strength, but to confirm any bullish movement, the Bollinger Bands Width has to re-expands with the KLCI firmly above the Bollinger Middle Band.

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