After being resisted by the L1 line, the FBM KLCI continues to fall on Friday, losing another 10.23 points to close at 1311.20 points. As indicated by A, the FBMACE is precisely supported by the 1308 WinChart Automatic Fibonacci Retracement, thus this is the immediate support for the KLCI, while resistance is at 1354 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 7%, suggesting that the KLCI is consolidating, and the target of its consolidation is at the Bollinger Middle Band. Generally, if the KLCI should rebound from the Bollinger Middle Band, there is a chance that the KLCI might resume its uptrend. Otherwise, if the KLCI should break below the Bollinger Middle Band, the rally would come to an end.

As indicated by B, total market volume declined 9.6%, with volume below the 40-day VMA level. The lower market volume implies that the market sentiment is not at the ideal level yet, and it is quite normal to have lower volume during a consolidation.

As indicated by C, the Stochastic breaks below 70% level, and ended the short term bullish signal. If the Stochastic should rebound to above 70% level in the immediate term, the short term bullish would resume.

In conclusion, the KLCI managed to found its temporary support at 1308 WinChart Automatic Fibonacci Retracement, but it has to rebound to confirm the validity of this support. If the KLCI should break below this level, the next support for the KLCI is found at 1270 level.

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