As indicated by A, the KLCI was supported by the T2 line as well as the Bollinger Middle Band again, suggesting that the KLCI immediate outlook has not turned bearish. Therefore, the Bollinger Middle Band and the T2 line are still the dynamic support for the KLCI while the resistance is still at 1053 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width contracted 10%, suggesting that the KLCI is consolidating. As long as the Bollinger Bands Width is still contracting, the KLCI is likely to move sideways or some risk of a technical correction.

As indicated by B, total market volume increased 64.3%, bring the volume back above the 40-day VMA level. However, in order for the KLCI to regain its strength, volume has to remain above the 40-day VMA level.

As circled at C, the Stochastic rebounded from 70% level, and therefore, suggesting that the short term movement of the KLCI has not turned weak. If the Stochastic should remain above 70% level, there is a chance for the KLCI to resume its uptrend.

The rebound from the Bollinger Middle Band and T2 is important for they temporary keep the KLCI from turning weaker. However, in order for the KLCI to resume its uptrend, the we should have the following criteria, which are the re-expansion of the Bollinger Bands Width, with the KLCI above the Bollinger Middle Band, as well as an increased of volume above the 40-day VMA level.

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