The KLCI ended lower amid negative performance across the regional markets, but the KLCI was supported by the Bollinger Middle Band, and this suggests that the Bollinger Middle Band is still serving as the dynamic support for the KLCI. Meanwhile, the 1300 points is still the support for the KLCI.

As shown on the chart, the Bollinger Bands contracted 4%, suggesting that the KLCI might be consolidating again. Nevertheless, with the KLCI above the Bollinger Middle Band, the immediate outlook for the KLCI is still bullish biased. If the KLCI should rebound from the Bollinger Middle Band, there is still a chance for the KLCI to resume its uptrend, or else, the immediate outlook shall turn weaker.

As indicated by B, total market volume declined 5.4% but still standing above the 40-day VMA level. Therefore, the market participation is relatively still active, thus the market sentiment as a whole is still positive.

As indicated by C, the Stochastic breaks below 70% level, suggesting that the KLCI is having its technical correction. Nevertheless, if the Stochastic should return to above 70% level in the near term, the short term bullishness of the KLCI would resume. If the Stochastic should continue falling, the short term movement for the KLCI would turn weaker.

In conclusion, the KLCI was pulled by the poorer performance of markets abroad, but remains supported, and this shows that the uptrend of the KLCI is still intact. In short, if the KLCI should rebound from the Bollinger Middle Band, the uptrend is likely to resume.

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