The KLCI ended lower on Monday, but it managed to find its support at 1292 points, which is the 38.2% Fibonacci Retracement line, as indicated by A. Next support for the KLCI is at 1279 WinChart Automatic Fibonacci Retracement while the resistance is at 1308 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands expanded, with the KLCI below the Bollinger Middle Band, thus showing a negative signal. If the Bollinger Bands should continue to expand with the KLCI below the Bollinger Middle Band, more downside risk is expected for the KLCI.

As indicated by B, total market volume increased 17.4%, but still below the 40-day VMA level. Therefore, the market is still relatively quiet. In other words, investors confidence is still low.

As indicated by C, the Stochastic is still falling, while below 30% level, therefore, the Stochastic is still showing a short term bearish signal for the KLCI.

In conclusion, despite the support of the 14, 21, 31 EMA, the expansion of the Bollinger Bands suggests that the KLCI is turning weaker. If the KLCI should failed to rebound, the technical outlook for the KLCI is expected to be weak.

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