On Thursday, the FBM KLCI was still trading at narrow range, losing 2.06 points. Support for the KLCI remains at 1257 while the resistance is still at 1288 WinChart Automatic Fibonacci Retracement.

As indicated by A, the KLCI managed to stay above the Bollinger Middle Band, with the immediate outlook slightly on the positive side, while still consolidating. The KLCI has not shown any bullish signal yet, for the Bollinger Bands is still contracting.

As indicated by B, total market volume increased 5.6%, while the volume is gradually getting closer to the 40-day VMA level. Generally, if volume should reach the 40-day VMA level, the market sentiment is likely to improve. But until then, the overall market participation is relatively still low, as investors are still on the sidelines.

As circled at C, the Stochastic retreated to the 70% level, which is normal for the KLCI has retreated on Thursday. If the Stochastic should remain above 70% level, the short term bullish signal for the KLCI shall remain intact.

In general, the KLCI is still consolidating with some positive biased. As we are approaching to the year end, possible window dressing effect is likely to keep the KLCI staying on the positive region. Therefore, if the Bollinger Bands should expand again, with the KLCI above the Bollinger Middle Band, there is a chance for the KLCI to test the 1288 level.

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