After being resisted by the 1297 WinChart Automatic Fibonacci Retracement, the KLCI retreated, and temporary supported by the 1284 WinChart Automatic Fibonacci Retracement, which is the 61.8% WinChart Automatic Fibonacci Retracement, as indicated by A, losing 8.12 points. Support for the KLCI is at 1284, while the resistance is at 1297 to 1300 psychological level.

As shown on the chart above, the Bollinger Bands contracted 12%, suggesting that the KLCI is still consolidating while the direction is still unclear, until the re-expansion of the Bollinger Bands, then the direction of the new movement shall be determined by the KLCI above or below the Bollinger Middle Band.

As indicated by B, total market volume declined 27%, with volume below the 40-day VMA level. This shows that the market is lightly participated, which implies that the investors' confidence is still low. Without sufficient inflow of fresh capital, the KLCI or the market sentiment is likely to be weak.

As circled at C, the Stochastic retreated, after being over-heated. However, if the Stochastic should remain above 70%, it suggests that the short term movement of the KLCI is still on the positive side.

In conclusion, the KLCI retreated after being over-heated. If the Stochastic should break below 70%, it would market an end to the short term bullish signal.

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