After being supported by the 14-day EMA, the KLCI rebounded another 3.09 points on Wednesday, to close at 1301.95 points. As indicated by A, the KLCI had its intra-day high reaching 1308 points, but precisely resisted by the 1308 WinChart Automatic Fibonacci Retracement, which is also the level of the Bollinger Middle Band dynamic resistance. Support for the KLCI remains at 1300 and 1292 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 6%, suggesting that the KLCI is now consolidating. For the KLCI to regain strength, it has to break above the Bollinger Middle Band, or else, the immediate technical outlook shall remain weak.

As indicated by B, total market volume increased 9.3%, with volume getting nearer to the 40-day VMA level. Technically speaking, if volume should break above the 40-day VMA level, the market sentiment as a whole is expected to improve.

As indicated by C, the Stochastic continue to rebound, suggesting that the short term movement of the KLCI is gradually regaining strength. If the Stochastic should break above 70% level, it would be a signal suggesting the KLCI short term movement is bullish.

In conclusion, the KLCI continue to rebound after being supported by the 14-day EMA. However, due to the lack of volume, the KLCI has not really picking up strength as investors' confidence is still low. Nevertheless, if the KLCI should break above the Bollinger Middle Band, the technical outlook is expected to improve.

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