As indicated by A, the KLCI was resisted by the Bollinger Middle Band again, and ended lower. Therefore, the Bollinger Middle Band is still serving as a dynamic resistance for the KLCI; resistance is at 1287 WinChart Automatic Fibonacci Retracement while the support is at 1272 (61.8% WinChart Automatic Fibonacci Retracement)

As shown on the chart above, the Bollinger Bands contracted 14%, suggesting that the KLCI is likely to consolidate, and technically, the consolidation is expected to continue until the re-expansion of the Bollinger Bands.

As indicated by B, total market volume declined 10.4%, while volume remains below the 40-day VMA level. This shows that the market is indeed quiet, as investors' confidence is relatively lower. Therefore, a lower volume generally suggests a lack of fresh inflow of capital, thus not easy to offset the market selling pressure.

As indicated by C, the Stochastic failed to break above 50%, and therefore, suggesting that the KLCI has failed to pick up some strength for the short term. Technically, the Stochastic has to break above and remain above 70% level, to signal a short term bullish movement.

In conclusion, the KLCI is still resisted by the Bollinger Middle Band, thus the immediate technical outlook is still weak, while likely to consolidate. If the Bollinger Bands should re-expand with the KLCI staying below the Bollinger Middle Band, more downside movement is expected for the KLCI.

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