As indicated by A, the KLCI fell 0.35 points to close at 1339.72 points, while still consolidating in a narrow range. Support for the KLCI remains at 1334 and 1318.53 WinChart Automatic Fibonacci Retracement while the resistance are seen at 1347.61 followed by 1354 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands is still unchanged, suggesting that the KLCI is still in a consolidating phase, until the re-expansion of the Bollinger Bands. If the Bollinger Bands should expand with the KLCI above the Bollinger Middle Band, it would be a bullish signal, otherwise, a bearish signal.

As indicated by B, total market volume increased 21.9% and breaking above the 40-day VMA level. However, part of the increased volume was from some selective counters with heavy selling such as KNM, and therefore, this could not full reflect the overall improvement of the market sentiment.

As circled at C, the Stochastic retreated slightly at 90%, but generally, with the Stochastic above 70% level, the KLCI short term movement is still in the bullish territory. If the Stochastic should break below 70% level, it would be a signal suggesting a beginning of a technical correction.

In conclusion, the Bollinger Bands is still contracting at the tight band width, suggesting that the KLCI is still preparing for a new movement, and the beginning of the new movement is about to take place. We shall monitor the re-expansion of the Bollinger Bands, and the relative position of the KLCI at the Bollinger Middle Band to determine the new direction.

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