As indicated by A, the FBM KLCI tested the 1308 WinChart Automatic Fibonacci Retracement, but remained resisted by the 1308, suggesting that the 1308 WinChart Automatic Fibonacci Retracement is still the resistance for the KLCI while the support is at 1300 mark.

As shown on the chart above, the Bollinger Bands contracted 9%, suggesting that the KLCI is still consolidating. The consolidation of the KLCI is expected to carry on until the Bollinger Bands re-expands.

As indicated by B, total market volume declined 8.7%, with volume below the 40-day VMA level. Therefore, it suggests that the market is lightly participated as investors are still staying on the sidelines.

As indicated by C, the Stochastic is still falling, breaking below 30% level, entering the short term bearish territory. If the Stochastic should remain below 30% level, the short term movement of the FBMACE is expected to be bearish biased.

In conclusion, despite the KLCI only losing 0.1 point, the technical outlook remains weak. However, the KLCI is still supported by the 14, 21, 31 EMA, thus it has not formed a downtrend yet. For the mean time, the KLCI is expected to stay in consolidation mood until the re-expansion of the Bollinger Bands.

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