As indicated by A, the KLCI rebounded further on Monday, and now testing the Bollinger Middle Band. The KLCI closed at 1333.97 points, gaining 1.08 points. The immediate resistance for the KLCI is at 1334 followed by the 1350 WinChart Automatic Fibonacci Retracement while the support is at 1320 followed by 1300 psychological level.

As shown on the chart above,the Bollinger Bands only expanded, suggesting that the expansion rate was not significant to signal any movement for the KLCI, thus the market is still trendless for the moment.

As indicated by A, total market volume declined 14.1%, with volume below the 40-day VMA level, and therefore, the market is lightly participated, while implying that investors' confidence is still low. Therefore, without sufficient market participation, the market , or the KLCI is unlikely to pick up its strength.

As circled at C, the WinChart RSI has been moving around 50% level for some time, suggesting that the KLCI has been consolidating while, until now, still has not made up a clear trend yet. Technically, the WinChart RSI has to either break above 70% or below 30% to suggests a direction for the KLCI.

In conclusion, the KLCI remains in the Wedge (L1 and L2) while the direction is still unclear with low volume. In short, the re-expansion of the Bollinger Bands shall give a good idea of where the KLCI will be heading to.

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