On Friday, the KLCI closed 0.23 of a points lower at 1336.78 points, and remain in its low volatility consolidation. Support for the KLCI remains at 1334 WinChart Automatic Fibonacci Retracement while the immediate resistance is at 1347.61 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands contracted 0%, suggest that the consolidation of the KLCI might be coming to an end, and when the Bollinger Bands should re-expand, it would be an end to the consolidation and the beginning of a new movement.

As indicated by B, total market volume fell 1.9%, with volume still below the 40-day VMA level. Therefore, the market is relatively quiet, as investors chose to stay on the sidelines while the KLCI consolidates.

As circled at C, the Stochastic failed to break above 70% level, and therefore, it has not signaled any short term bullishness for the KLCI yet, and the consolidation of the KLCI continues.

In conclusion, the KLCI has not broken away form its narrow consolidation but fortunately, the KLCI is now above the Bollinger Middle Band, thus the immediate technical outlook is slightly on the positive side.

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