As indicated by A, the FBM KLCI rebounded on Thursday, breaking above the 1334 level, and therefore, it has not formed a downtrend yet. Resistance for the KLCI remains at 1347.61 WinChart Automatic Fibonacci Retracement while the supports are at 1334 followed by 1318.53 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded 0%, suggesting that the KLCI is basically still trendless; and at the moment, the KLCI is testing the Bollinger Middle Band, thus the market direction shall remain unclear.

As indicated by B, total market volume increased 8.1%, with volume getting closer to the 40-day VMA level. However, this is still not the ideal volume for a healthy uptrend. Without sufficient market participation, the market sentiment is likely to stay low.

As circled at C, the Stochastic returned to 70% level, re-entering the short term bullish territory. If the Stochastic could remain above 70% level, the market movement for the short term is expected to be on the positive side.

The KLCI rebounded and continued its sideways consolidation. Technically, the market direction is still unclear as the Bollinger Bands has not expanded. When the Bollinger Bands re-expands, the direction of the KLCI shall be determined by the relative position of the Bollinger Middle Band .

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