As indicated by A, the FBM KLCI rebounded from the 1257 WinChart Automatic Fibonacci Retracement, suggesting that the the 1257 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 8%, suggesting that the KLCI is likely to consolidate. Nevertheless, the KLCI is still situated below the Bollinger Middle Band, and the immediate outlook for the KLCI is still on the negative side unless a valid break out above the Bollinger Middle Band.

As indicated by B, total market volume continue to shrink while still further below the 40-day VMA level. Therefore, the overall market participation is still very low.

As circled at C, the Stochastic rebounded after touching zero level, which is a short term over-sold signal. This implies that the KLCI is likely to have a technical rebound. Nevertheless, with the Stochastic still below 30% level, the short term bearish signal remains intact until a valid break out above the 30% level.

Despite the rebound at 1257 WinChart Automatic Fibonacci Retracement, the KLCI is still below the Bollinger Middle Band. Fortunately the Bollinger Bands is now contracting, suggesting that the KLCI is likely to consolidate, but still, with some bearish biased. Nonetheless, the consolidation of the KLCI is expected to continue until the re-expansion of the Bollinger Bands.

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