As indicated by A, the FBM KLCI tested the Bollinger Middle Band on Thursday, but still resisted by the Bollinger Middle Band dynamic resistance. Therefore, the immediate outlook for the KLCI is still weak while the Bollinger Middle Band dynamic resistance remains intact. Other than the Bollinger Middle Band, the 1288 remains the resistance for the KLCI while the support is still at 1257 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Middle Band moved up slightly, and this may suggest that some slight improvement for the KLCI movement. Nevertheless, the KLCI has to first break above the Bollinger Middle Band, with the Bollinger Bands expanding, then only the KLCI would have a chance to regain some strength.

As indicated by B, total market volume further declined, while further below the 40-day VMA level. Therefore, the market participation is low, and the market sentiment is also weak, as the KLCI is still trendless.

As circled at C, the Stochastic breaks above 30% level, as the KLCI technically rebounded. Therefore, it is breaking away from the short term bearish region. If the Stochastic should break above 70% and stay above that level, the short term movement for the KLCI would pickup some momentum.

After consolidating for a period of time, the KLCI is showing a slim chance of breaking away from the weakening movement. If the KLCI should successfully breaking above the Bollinger Middle Band, the KLCI would have a better chance to regain some ground. Nonetheless, the positive signal should be confirmed by the expansion of the Bollinger Bands with the KLCI above the Bollinger Middle Band.

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