The KLCI ended lower on Friday, while rebounded at the 1250 support, the KLCI closed 5.35 points or 0.4% lower at 1259.16 points. As indicated by A, the support for the KLCI remains at 1250 WinChart Automatic Fibonacci Retracement while the resistance is still at 1272 WinChart Automatic Fibonacci Retracement followed by the 1300 level.

As shown on the chart above, the Bollinger Bands expanded 20%, which is a slower expansion rate than the previous day; this implies that the falling KLCI is likely to slow down, or it might be consolidating soon. If the KLCI should rebound, the Bollinger Middle Band would be a target of the rebound.

As indicated by B, total market volume increased 4.1%, while barely staying above the 40-day VMA level. Therefore, the overall market participation is still on the healthy level. If volume should fall below the 40-day VMA level, the market sentiment is likely to turn weaker.

As indicated by C, the Stochastic %K line touches the %D line. If the %K line should cross above the %D line, it would be an early signal suggesting a beginning of a technical rebound. But still, the short term movement of the KLCI shall remain weak unless the Stochastic should break above 30% level.

In conclusion, the KLCI is due for a technical rebound or a consolidation. But if the KLCI has to break away from the bearish biased movement, it has to break above the Bollinger Middle Band.

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