The KLCI ended marginally higher on Wednesday, while still resisted by the Bollinger Middle Band, as indicated by A. This suggests that the Bollinger Middle Band is still serving as the dynamic resistance for the KLCI, while the support is still at 1257 WinChart Automatic Fibonacci Retracement.

As shown on chart above, the Bollinger Bands contracted 1%, suggesting that the KLCI is still trading in a consolidation mood, and the consolidation shall carry on until the re-expansion of the Bollinger Bands. Then, the relative position of the KLCI above or below the Bollinger Middle Band shall determine the new movement for the KLCI when the Bollinger Bands expands.

As indicated by B, total market volume continues to fall, with volume only reaching half of the 40-day VMA level. This suggests that the overall market is indeed really quiet, as market sentiment is still weak.

As circled at C, the Stochastic stopped climbing at 30% level, failing to break above the short term bearish region. Therefore, this suggests that the short term movement of the KLCI is still weak. Technically speaking, the Stochastic has to break above the 30% level, to signal a beginning of a technical rebound for the KLCI.

With the Bollinger Bands still contracting, the KLCI consolidation continues while also preparing for a new movement. Therefore, we shall have to wait for the re-expansion of the Bollinger Bands to signal the beginning of a new movement. In short, in order to regain some strength, the KLCI has to first break above the Bollinger Middle Band, or else, the immediate outlook for the KLCI is still on the negative side.

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