Despite the rebound of regional market, the FBM KLCI did not follow suit, ending only 0.1 points higher, to close at 1260 points. As indicated by A, the 1257 level is still the support for the KLCI while the resistance is at 1288 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 1%, suggesting that the KLCI might be consolidating. If the Bollinger Bands should continue to contract, the KLCI is likely to move sideways, until the Bollinger Bands should re-expands.

As indicated by B, total market volume declined 7.5%, while still staying below the 40-day VMA level. In short, the market is relatively quiet, and the KLCI is not likely to pick up any strength with such low volume.

As circle at C, the MACD is gradually falling, while testing the zero line. If the MACD should break below the zero line, it would means that the mid to longer term movement of the KLCI is turning weak.

In conclusion, the KLCI is still showing sign of weakness, but it has not confirmed a formation of a downtrend yet for the 1257 support remains intact. Nonetheless, if the MACD line should rebound, the KLCI is likely to steer away from a downtrend formation. But still, to have a new movement for the KLCI, the Bollinger Bands has to re-expand again, and the new direction is determined by the position of the KLCI above or below the Bollinger Middle Band.

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