The FBM KLCI tested the 1248 WinChart Automatic Fibonacci Retracement, but still resisted by the 1248 WinChart Automatic Fibonacci Retracement, study arrow A. Therefore, the 1248 WinChart Automatic Fibonacci Retracement is still the resistance for the KLCI while the supports are at 1243 and 1220 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expansion rate reduced to only 6%, this implies that the downside movement might be slowing down, or if the Bollinger Bands should contract, the KLCI is likely to consolidate.

As indicated by B, total market volume increased 7.1%. This suggests that the overall market participation is still active and the market sentiment as a whole is still on the positive side.

As indicated by C, the Stochastic rebounded, but still below 30% level, which suggests that the short term movement of the KLCI is still bearish biased. If the Stochastic should break above 30% level, there is a chance for the KLCI to regain some strength.

In conclusion, the KLCI rebounded as the markets across the globe rebounded, but still, it is resisted by the 1248 WinChart Automatic Fibonacci Retracement. Since the 1248 WinChart Automatic Fibonacci Retracement is the 61.8% retracement between the highest 1524.69 and the lowest 801 points, it is an important resistance / support level. Therefore, the KLCI is still testing this resistance level. Coupled with the post-budget correction, the KLCI ended mostly flat. Nonetheless, if the KLCI should break above the 1248 WinChart Automatic Fibonacci Retracement as well as the Bollinger Middle Band, there is a good chance for the KLCI to resume its uptrend. But on the other hand, if the KLCI should continue to stay below the Bollinger Middle Band, the outlook for the KLCI shall remain bearish biased.

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