As lead by the negative performance of markets across the region, the KLCI loss 11.25 points or 0.9%, to close at 1249.05 points. As indicated by A, the 1248 WinChart Automatic Fibonacci Retracement is still the support for the KLCI, and if the KLCI should break below the 1248 WinChart Automatic Fibonacci Retracement, the next support for the KLCI will be at 1220 WinChart Automatic Fibonacci Retracement, while the resistance are found at 1270 and 1300 level.

As shown on the chart above, the Bollinger Bands contracted 30%, suggesting that the KLCI is still consolidating, while still preparing for a new movement. When the Bollinger Bands re-expands, it would be the signal suggesting a beginning of a new movement, and the direction of the new movement shall be determined by the relative position of the KLCI above or below the Bollinger Middle Band.

As indicated by B, total market volume declined 7.4%, but still above the 40-day VMA level. This suggests that the overall market participation is still healthy and in general, volume above the 40-day VMA level is the element to help sustain the positive market sentiment. If the KLCI should retreat with extremely high volume, it would be a signal suggesting a strong selling pressure.

As indicated by C, the Stochastic fell below 70% level, suggested that the short term bullishness of the KLCI has ended. If the Stochastic should remain below 30% level, the market movement for the short term is expected to be weak.

The KLCI tested the 1248 WinChart Automatic Fibonacci Retracement again as affected by the negative regional market performances. If the KLCI should failed to hold up above 1248 WinChart Automatic Fibonacci Retracement or the Bollinger Middle Band, there is a risk of a downtrend formation.

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