The KLCI continued its technical rebound on Monday, also breaking above the 200-day Moving Average line as well as the 1272 WinChart Automatic Fibonacci Retracement, as indicated by A. This suggests the KLCI has not entered a bear market. Support for the KLCI is at 1272 WinChart Automatic Fibonacci Retracement while the resistance is at 1287 WinChart Automatic Fibonacci Retracement.

The Bollinger Bands contracted 10%, suggesting that the KLCI is likely to consolidate form now, while the target of the rebound or the consolidation is at the Bollinger Middle Band.

As indicated by B, total market volume declined 12%, while the volume is below the 40-day VMA level. This shows that the market is back to quiet, as investors are still staying out from the stock market. In short, the market sentiment is less likely to be very good if volume should stay low.

As indicated by C, the Stochastic breaks above 30%, suggesting a beginning of a technical rebound. However, this has not shown any signs of short term strength yet, as the Stochastic has to break above the 70% to show a bullish signal.

In conclusion, the KLCI is still at its technical rebound stage, while testing the Bollinger Middle Band as well as the 1287 WinChart Automatic Fibonacci Retracement resistance. Fortunately, the KLCI managed to stay above 200-day MA, thus avoiding the bear market for now.

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