As indicated by A, the FBM KLCI tested the 1348 WinChart Automatic Fibonacci Retracement but remain resisted, and at the end of the trading, losing 4 points to close at 1342.89 points. Therefore, the immediate resistance for the FBM KLCI remains at 1348 WinChart Automatic Fibonacci Retracement while the support is at 1334 followed by 1318.53 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 20%, putting an immediate pause to the upside volatility. Nevertheless, with the KLCI still holding up above the Bollinger Middle Band, the immediate technical outlook is still on the positive side, unless the KLCI should fall below the Bollinger Middle Band.

As indicated by B, total market volume declined 0.5%, while volume stays below the 40-day VMA level. Therefore, the overall market participation is still low, thus reflecting that investors' confidence is also relatively lower. In other words, without sufficient market participation, the KLCI is less likely to pick up its strength.

As circled at C, the Stochastic started to fall and testing the 70% level. If the Stochastic should break below the 70% level, it would mark an end to the short term bullish movement, and a beginning of a technical correction.

The immediate upside signal of the KLCI is temporary disrupted by the sharp contraction of the Bollinger Bands, but with the support of the Bollinger Middle Band remains intact, the KLCI has not formed a downtrend yet, unless the KLCI should break below the Bollinger Middle Band with the Bollinger Bands re-expanding.

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