As shown on the chart above, the KLCI ended 3.78 points lower to close at 1331.87. Support for the KLCI is at 1320.29 while the resistance remains at 1334 followed by 1350 WinChart Automatic Fibonacci Retracement.

As indicated by A, the KLCI tested the Bollinger Middle Band, but retreated, and therefore, still staying below the Bollinger Middle Band. Meanwhile, the Bollinger Bands expanded 4%, thus giving a negative technical outlook for the KLCI. If the Bollinger Bands should continue to expand with the KLCI staying below the Bollinger Middle Band, more downside movement is expected for the KLCI.

As indicated by B, total market volume increased 4.4%, and getting closer to the 40-day VMA level. Nevertheless, the KLCI has to break above the Bollinger Middle Band, with volume increasing or else, if market volume should remains low, the KLCI is less likely to pick up any strength.

As indicated by C, the Stochastic is now testing the 30% level, and if the Stochastic should break below 30% level, it would enter the short term bearish territory, thus the short term market movement of the KLCI is expected to be bearish biased.

In conclusion, technical indicators are suggesting some weaker signals for the KLCI, and with the KLCI staying at the top of the Ascending Wedge, there is a risk of a reversal.

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