As indicated by A, the FBM KLCI is supported by the Bollinger Middle Band, suggesting that the Bollinger Middle Band is still serving as the dynamic support for the KLCI. If the KLCI should break below the Bollinger Middle Band, the immediate outlook would be turning bearish. 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 above, the Bollinger Bands Width contracted only 1%, this implies that the Bollinger Bands Width might not be contracting anymore soon, and if the Bollinger Bands Width should re-expands, it would be a signal suggesting a beginning of a new movement. If the KLCI should remain above the Bollinger Middle Band as the Bollinger Bands Width re-expands, it would be a bullish signal, suggesting that the KLCI is resuming its uptrend.

Total market volume declined 8.3%, and therefore, the overall market participation is still below the 40-day VMA level, suggesting that the market is still relatively quiet as investors are still being cautious. Nonetheless, as the 40-day VMA level is still descending, it is not too difficult for volume to break above the 40-day VMA level. In short, volume above the 40-day VMA level is imperative for the KLCI to sustain its bullishness.

As indicated by C, the WinChart RSI is still above 70% level, which is the mid term bullish territory, this suggests that the market strength for the mid term is still bullish. If the WinChart RSI should break below 70% level, it would be a signal suggesting that the mid term movement of the KLCI is turning weak.

In conclusion, there is a sign that the Bollinger Bands Width might stop contracting, this implies that the KLCI is likely to maintain its current consolidation mood. If the Bollinger Bands Width should re-expands, the KLCI would being a new movement, and if the KLCI should stay above the Bollinger Middle Band, it would be a bullish movement signal for the KLCI. However, if the KLCI should stay below the Bollinger Middle Band as the Bollinger Bands Width expands, it would be a bearish signal.

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