As shown on the chart above, the had its intra-day high reaching 1179.08 points, but profit taking activities took place, and pulled down the KLCI to close 7.9 points or 0.7% lower. Since the KLCI is closing around the 1163 level, the 1163 WinChart Automatic Fibonacci Retracement will be the current support for the KLCI while 1186 WinChart Automatic Fibonacci Retracement is still the resistance.

Bollinger Bands Width contracted 17% on Wednesday, suggesting the KLCI is still consolidating. As indicated by A, the Bollinger Middle Band is the target of the KLCI consolidation and if the KLCI should rebound from the Bollinger Middle Band, there is a good chance for the KLCI to resume its rally.

As indicated by B, total market volume increased to the 40-day VMA level. However, the KLCI ended lower suggesting some increased of selling. Nevertheless, as the KLCI managed to rebound from its daily low, it suggests that there were some late buying interests.

As circled at C, the MACD histogram is still showing a rounding top, suggesting the consolidation of the KLCI is still in place. In short, the consolidation is expected to carry on until the MACD histogram should form a rounding bottom.

Despite volume rising to the 40-day VMA level, the KLCI ended lower as profit taking took place. Fortunately, some late buying helped the KLCI regain some ground. If the KLCI should have a healthy consolidation above the Bollinger Middle Band, the KLCI is likely to resume its uptrend after the consolidation.

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