Despite touching an intra-day high of 1212.70 points, the KLCI ended lower, pulled by the weaker performance of the regional markets. The KLCI closed 4.92 points lower to 1203.36 points Resistance for the KLCI is at 1248 WinChart Automatic Fibonacci Retracement while the support is at 1200 psychological level.

As indicated by A, the Bollinger Bands Width expanded only 4%, suggesting that the KLCI is consolidating, and the first target of the consolidation is the Bollinger Middle Band, which is the current dynamic support for the KLCI. If the KLCI should break below the Bollinger Middle Band, it would be an end to the uptrend.

As indicated by B, total market volume increased 6%, but still below the 40-day VMA level, this suggests that the market participation is still low as the KLCI is consolidating.

As indicated by C, the Stochastic retreated as the KLCI ended lower. However, the Stochastic has not broken below the 70% level, this shows that the short term movement of the KLCI has not turned weak. Nevertheless, if the Stochastic should break below 70% level, it would be a signal suggesting an end to the short term bullish movement, but if the Bollinger Bands Width should contract, the KLCI is not forming a downtrend yet. This is because, formation of trend should be confirmed with the re-expansion signal of the Bollinger Bands.

The falling of the KLCI was lead by the weaker regional market performance, together with the lack of positive sentiment. Fortunately, the KLCI is still supported by the 14, 21, 31 EMA, and therefore, this is only a technical correction signal, and not an end of the uptrend, unless the KLCI should break below the Bollinger Middle Band.

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