As indicated by A, the KLCI was precisely supported on Bollinger Middle Band (BMB) again, therefore, BMB will continue to be the KLCI dynamic support line, while the KLCI resistance remains at 1200 pt psychological resistance.

As shown in the chart above, Bollinger Bands further contracted 8%, this indicates that the KLCI is still in a consolidation, as the KLCI is still moving sideways. Normally, the longer the Bollinger Bands narrowing, the greater force or strength of the KLCI movement when the Bollinger Bands Width expands. Another words, should Bollinger Bands continue to contract, the next movement of the KLCI is expected to be stronger.

As indicated by B, volume slightly up 2.5%, therefore, volume remains above the 40 Volume Moving Average (VMA), this is the sign of active market, it would help the KLCI in gaining strength.

As indicated by C, Stochastic rebounded at 70%, this shows that the KLCI short term movement is still bullish biased as the Stochastic is still at the bullish territory. In other words, should the Stochastic maintains above 70%, the KLCI will be able to hold on above the 1186 WinChart Automatic Fibonacci Retracement (WAFR).

As the Bollinger Bands continues contracting, this indicates that the KLCI is still in a sideways consolidation, luckily, the KLCI remains above Bollinger Middle Band, and therefore, the KLCI has not shown any sign of weakening. When the Bollinger Bands begins to expand, the KLCI would have the chance to move up from its sideways movement, provided the KLCI is above Bollinger Middle Band.

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