As shown on the chart above, the KLCI remain resisted by the L2 line of the Symmetrical Triangle, and therefore, suggesting that the KLCI is still consolidating, with 1095.91 WinChart Automatic Fibonacci Retracement as the major resistance while the Bollinger Middle Band and the 1035 WinChart Automatic Fibonacci Retracement are the supports.

As indicated by A, the Bollinger Bands Width contracted another 16%, showing a similar signal as the Symmetrical Triangle, suggesting a consolidation for the KLCI. Meanwhile, the contraction of the Bollinger Bands Width also implies that the KLCI is preparing for a new movement, and the new movement shall only be revealed when the Bollinger Bands Width re-expands.

As indicated by B, total market volume increased 46.8%, but still below the 40-day VMA level. This shows that the overall market is still relatively quiet as the inflow of fresh capital is still insufficient to off set the selling pressure. Therefore, the KLCI failed to regain its strength while still resisted by the L2 line.

As circled at C, the Stochastic remain above 70%, which is a short term bullish territory. However, during a consolidation stage of the KLCI, Secondary Indicators like Stochastic could be over-sensitive, and therefore, the priority of the analysis should based on chart analysis, in this case, the Symmetrical Triangle.

In short, the KLCI consolidation remains intact. With losers outnumbered the gainers, and also most of the most-active counters are showing sign of profit taking, the KLCI is less likely to pick up its strength until successfully breaking above the L2 line and 1095.91 WinChart Automatic Fibonacci Retracement.

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