On Wednesday, the FBM KLCI ended 2.26 points, to close at 1333.64 points. Therefore, the 1334 is still the resistance for the KLCI while the support is at 1318.53 WinChart Automatic Fibonacci Retracement.

As indicated by A, the KLCI tested the Bollinger Middle Band, with the Bollinger Bands contracting 11%, and therefore, this suggests that the KLCI is still consolidating while the direction is still unclear. The consolidation of the KLCI is expected to carry on until the Bollinger Bands re-expands.

As indicated by B, total market volume increased 9.9%, with volume still below the 40-day VMA level. This suggests that the overall market is relatively quiet. Technically, volume has to be above the 40-day VMA level in order for the KLCI to regain its strength.

As indicated by C, the MACD histogram started rising, and it could be forming a Rounding Bottom. If the MACD histogram should form a Rounding Bottom, it would be a signal suggesting that the KLCI is re-gaining some strength, thus a chance of a technical rebound, or the KLCI could resume its uptrend.

In conclusion, the KLCI has not broken above the 1334 successfully, coupled with the 1334 WinChart Automatic Fibonacci Retracement is over-lapping with the Bollinger Middle Band, therefore, it is likely to be an important resistance level. If the Bollinger Bands should re-expand with the KLCI remains below the Bollinger Middle Band, the KLCI would be trending lower. In contrary, if the KLCI should break above the Bollinger Middle Band with the Bollinger Bands expanding, it would be a bullish signal.

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