As indicated by A, the Bollinger Bands expanded on Thursday, with the FBM KLCI below the Bollinger Middle Band, thus suggesting a bearish signal for the KLCI, as the KLCI gap down on Thursday. As shown on the chart, the 1248 is now the resistance for the KLCI while the support is at 1220 WinChart Automatic Fibonacci Retracement.

The expansion of the Bollinger Bands suggests that the KLCI is beginning a new movement, and if the Bollinger Bands should continue to expand with the KLCI below the Bollinger Middle Band, the bearish movement for the KLCI is expected to continue, unless the KLCI should return to above the Bollinger Middle Band in immediate term.

As indicated by B, total market volume fell 0.7%, with volume still above the 40-day VMA level. This suggests that the overall market participation is still active, despite the negative performance of the KLCI as well as market across the region. It also shows that there are still some bargain buying to offset some selling pressure.

As indicated by C, the MACD histogram is still falling while below the zero level, suggested that the KLCI movement is still weakening. Until the MACD histogram should form a Rounding Bottom, the weakening of the KLCI shall continue.

Technically, the expansion of the Bollinger Bands with the KLCI below the Bollinger Middle Band marks a beginning of a bearish movement, and the bearish movement is expected to carry on unless the KLCI should break above the Bollinger Middle Band immediately. Nonetheless, if the Bollinger Bands expansion rate should reduce, it would be an early signal suggesting that the KLCI might be consolidating again.

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