As indicated by A, the FBM KLCI is precisely resisted at the 14, 21, 31 EMA (Exponential Moving Average) which is serving as the dynamic resistance. The KLCI lost 1.33 points or 0.1%. This suggests that the KLCI has not totally broken away from its bearish biased trend, and the other resistance is at 1272 WinChart Automatic Fibonacci Retracement while the support is at 1250 WinChart Automatic Fibonacci Retracement.

Meanwhile, the Bollinger Bands contracted 3%, suggesting that the KLCI is still consolidating. However, since the KLCI has not broken below the Bollinger Middle Band, the the KLCI is not yet resuming its downtrend. If the KLCI should break below the Bollinger Middle Band, the immediate outlook for the KLCI would turn negative.

As indicated by B, total market volume increased 4.1%, but volume is still below the 40-day VMA level. This shows that the market is relatively still quiet, as investors are staying on the sidelines. Technically, it is normal to have lower volume as the KLCI is still consolidating. However, if the KLCI were to pick up its strength and attempt to resume its rally, volume above the 40-day VMA level is an important confirmation.

As circled at C, the Stochastic is still staying above 70% level, which is the short term bullish zone. This suggests that the short term movement of the KLCI has not turned weak. If the Stochastic should break below 70% level, it would be an end to the short term bullish signal.

In short, the KLCI still do not has its bullish conditions while still consolidating around the 14, 21, 31 EMA. Nevertheless, if the Bollinger Bands should continue to contract, the KLCI is expected to prolong its consolidation, thus preparing for a new movement, until the re-expansion of the Bollinger Bands.

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