As indicated by A, the FBM KLCI continued its correction on Wednesday, but supported by the Bollinger Middle Band. Therefore, the Bollinger Middle Band is still the dynamic support for the FBM while it is also the first target of the technical correction. Other than the Bollinger Middle Band, supports are also found at 1288 followed by 1276 WinChart Automatic Fibonacci Retracement; while the resistance remains at 1300 psychological level.

As shown on the chart, the Bollinger Bands contracted 6%, suggesting that the KLCI is still consolidating. Nevertheless, if the KLCI should rebound from the Bollinger Middle Band, there is still a good chance that the KLCI would resume its uptrend.

As indicated by B, total market volume declined 10%, but still firmly above the 40-day VMA level, suggesting that the overall market is still well-participated. Generally, with market being actively traded, the market sentiment is likely to remain positive, thus the KLCI rally would sustain.

As indicated by C, the Stochastic is now testing the 70% level. If the Stochastic should break below 70% level, it would be an end to the short term bullish signal, and the KLCI short term movement is expected to turn weak.

In conclusion, the KLCI correction is still supported by the Bollinger Middle Band, which is the dynamic support. If the KLCI should remain supported by the Bollinger Middle Band, and when the Bollinger Bands re-expands, the KLCI would resume its uptrend.

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