As indicated by A, the FBM KLCI fell 2.21 points, to close at 1265.03 points. Therefore, the resistance for the KLCI remains at 1272 WinChart Automatic Fibonacci Retracement while the support remains at 1250 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded 0%, suggesting that the KLCI volatility is reduced, thus a sign of a consolidation. However, since the KLCI is still staying below the Bollinger Middle Band, the immediate outlook for the KLCI is still bearish biased.

As indicated by B, total market volume declined 28.3%, and as a result, volume is now below the 40-day VMA level. Therefore, this suggests that the market is lightly participated. Generally, if volume should stay below the 40-day VMA level, the KLCI is less likely to pick up any strength.

As indicated by C, the Stochastic is still below 30% level, thus the market movement for the short term is still bearish biased. Technically, the Stochastic has to break above 30% level, in order for the KLCI to break away from the short term bearish status.

In short, as the market volume reduced significantly, the KLCI is likely to remains consolidating with some weakness. Technically, with the Stochastic below 30% level, and the KLCI below the Bollinger Middle Band, the short term outlook for the KLCI is still on the weaker side.

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