On Monday, the KLCI closed 1.53 points higher at 1294.51 points. As indicated by A, the KLCI is still consolidating as the support is at 1288 and 1276 while the resistance is still at 1300 psychological level.

As shown on the chart above, the Bollinger Bands contracted 5%, suggesting that the KLCI consolidation stage remains intact, and the Bollinger Middle Band is still serving as the dynamic support for the KLCI, which is the first target of the consolidation or the correction. Generally, if the KLCI should be supported by the Bollinger Middle Band, there is a chance that the rally would resume.

As indicated by B, total market volume increased 35.1%, while volume is still above the 40-day VMA level. This shows that the overall market is well-participated, as the market sentiment in general is still positive. Therefore, with new inflow of buying interest to off set the selling pressure, the KLCI positive sentiment is likely to sustain.

As indicated by C, the Stochastic is still above 70% level, which suggests that the short term movement of the KLCI is still bullish biased. In short, more upside room for the KLCI in the short term unless the Stochastic should break below 70% level.

In conclusion, the KLCI consolidation remains intact, with some positive biased. This is because the KLCI is still supported by the Bollinger Middle Band, and the KLCI is set to test the 1300 level again.

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