As indicated by A, the KLCI had an intra-day low touching 1000 points, and the KLCI rebounded from 1000 points, closing 2.2 points lower on Monday. Therefore, this shows that the 1000 level is still the psychological support level, while the other support is at the 14, 21, 31 EMA dynamic support.

Meanwhile, the Bollinger Bands Width contracted 37%, suggesting that the KLCI is still consolidating. Since the KLCI is below the Bollinger Middle Band, the Bollinger Middle Band will be the immediate resistance, while the next resistance is still at 1053 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume declined another 17.9%, but still above the 40-day VMA level. The lower volume on Monday is normal as the KLCI is still consolidating. With volume above the 40-day VMA level, it suggests that the overall market is still actively participated, thus the market sentiment as a whole is still positive.

As circled at C, the Stochastic is still falling, suggesting that the short term movement of the KLCI is still on the weaker side. However, the Stochastic has not broken below 30% level, therefore, the short term movement for the KLCI has not entered short term bearish.

The support at 1000 level is a positive note to the KLCI. If the KLCI should continue to rebound, and break above the Bollinger Middle Band, the immediate outlook would return to positive biased, and there is a chance for the KLCI to resume its T1 and T2 uptrend channel. Of course, the best confirmation would be the expansion of the Bollinger Bands Width as well as a substantial increased of volume.

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