As indicated by A, the Bollinger Bands Width contracted, despite the KLCI hit a 16 months new high. Nevertheless, the KLCI closed 2.13 points lower at 1219.07 points. Resistance for the KLCI remains at 1248 WinChart Automatic Fibonacci Retracement while the support is still at 1200 psychological level.

As shown on the chart, the Bollinger Bands Width contracted 20%, suggesting that the KLCI is now consolidating. Nevertheless, with the KLCI still above the Bollinger Middle Band, the immediate outlook for the KLCI is still bullish biased.

As indicated by B, total market volume is still below 40-day VMA level, as Wednesday's market volume declined 8.2%. This is a sign of a consolidating market as investors are still staying on the sidelines. In short, if volume should remain low, the KLCI is less likely to pick up its strength.

As indicated by C, the Stochastic retreated on Wednesday, touching the 70% level after hitting 100% last week. This is a signal suggesting that the KLCI begins to consolidate. If the Stochastic should break below 70% level, it would be an early signal suggesting that the KLCI might be turning weak.

In short, the KLCI is consolidating, and as long as the Bollinger Bands Width is contracting, the KLCI is likely to move sideways. Meanwhile, the Bollinger Middle Band shall serve as the immediate support, and if the KLCI should break below the Bollinger Middle Band, it would be a sign suggesting that the KLCI might be turning weak.

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