As indicated by A, the KLCI also breaks above the Bollinger Middle Band, and the immediate technical outlook is set to improve slightly. However, the Bollinger Bands is still contracting, and therefore, this suggests that the KLCI is still consolidating. If the Bollinger Bands should re-expand with the KLCI above the Bollinger Middle Band, the KLCI would resume its uptrend.

As indicated by B, total market volume fell 4.7%, with volume remain below the 40-day VMA level. Therefore, this implies that the market as a whole is lightly participated, as investors chose to stay on the sidelines. In short, without sufficient market participation, the KLCI is unlikely to gain strength.

As circled at C, the Stochastic touched the 70%, and if the Stochastic could stay above 70%, it would suggest that the short term movement of the KLCI is improving.

In conclusion, the KLCI is still consolidating with the KLCI returning to above Bollinger Middle Band, therefore, the immediate technical outlook has improved slightly, and if the Bollinger Bands should re-expand with the KLCI above the Bollinger Middle Band, KLCI would regain some strength.

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