As indicated by A, the Bollinger Bands (BB) continues to expand 41%, while the KLCI remains below the Bollinger Middle Band (BMB), therefore, the KLCI loss another 8.88 pt. The KLCI fell below the WinChart Automatic Fibonacci Retracement (WAFR) support level at 1163 pt, so the 1163 pt had became the KLCI resistance, on the other hand, a new support level is now at 1132 pt WAFR.

Though the KLCI started to fall after hitting 1196.46, the KLCI is yet to break below the 14, 21 and 31 days Exponential Moving Average (EMA), this means that the KLCI is still supported by the long term up trend EMA. In other words, if the KLCI should break below 31 days EMA, the risk of the KLCI going lower would be higher.

As indicated by B, volume traded decreased 12.8%, and therefore, volume fell below 40 days Volume Moving Average (40-day VMA level); this is normal when the KLCI is on a down trend, as investors choose to reduce their position while remain on the sidelines.

As indicated by C, the Stochastic failed to break above the 30% level, this means that the KLCI short term is still weak. The KLCI will remain in a short term down trend, until the Stochastic should break above 30%.

Since the KLCI has broken below the Bollinger Middle Band, the KLCI has started its downtrend, and should the KLCI break below the 31-day EMA, the KLCI would then confirm the end of a long term up trend. In conclusion, the KLCI short term will be on a down trend, until the Bollinger Bands begins to contract or the Stochastic successfully breaking above the 30% level.

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