As indicated by A, the KLCI tested the 1266.45 WinChart Automatic Fibonacci Retracement, but remained resisted. Therefore, the 1266.45 WinChart Automatic Fibonacci Retracement is still the resistance for the KLCI while the support is at 1256.52 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands has not expanded, but the KLCI remains above the Bollinger Middle Band, while the Bollinger Middle Band is slightly tilting up, suggesting some improvement of the current movement.

As indicated by B, total market volume increased 10.7%, but still below the 40-day VMA level. This shows that the overall market participation is still relatively low, and this could be the reason why the KLCI failed to break above its resistance.

As indicated by C, the Stochastic retreated slightly, but still above the 70% level, thus the short term bullish signal remains intact. Provided that the Stochastic is still above 70% level, the short term technical outlook for the KLCI is still positive.

In short, the KLCI is gradually regaining some losing ground, but it is still too early to determine a reversal, for more conditions is needed. For the immediate term, if the Bollinger Bands should re-expands with the KLCI above the Bollinger Middle Band, it could be a positive start.

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