As indicated by A, the KLCI continue to stay in the congestion zone of the 14, 21, 31 EMA, ended the day 5.09 points or 0.5% higher. Meanwhile, the Bollinger Bands Width did not expand significantly, and therefore, the KLCI has not yet formed a downtrend.

Resistance for the KLCI is at Bollinger Middle Band, while the supports for the KLCI are found at 1035 WinChart Automatic Fibonacci Retracement, followed by 1000 psychological support.

As indicated by B, total market volume declined another 22%, with volume below the 40-day VMA level. This suggest that the overall market participation is low, as inflow of fresh capital is relatively lower. Therefore, without sufficient buying interests, the KLCI is less likely to regain its strength.

As circled at C, the Stochastic rebounded slightly after almost touching 0%, it was a signal suggesting a slight over-sold condition, and as a result, the KLCI rebounded slightly on Friday. Nevertheless, with the Stochastic staying below 30% level, the market movement for the short term is still bearish biased.

Regional markets rebounded on Friday as the Dow Jones Industrial Average technically rebounded, and so as the KLCI. However, while the market is still lack of fresh lead, coupled with the absence of important criteria, such as the increased of volume, the KLCI is expected to stay within its consolidation stage for the immediate term.

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