As indicated by A, the KLCI is still consolidating in its low fluctuation manner, closing 1291.31 points, gaining only 1.23 points. Support for the KLCI remains at 1284 (38.2% Fibonacci Retracement) while the resistance is at 1297 to 1300 psychological level.

As shown on the chart above, the 14, 21, 31 EMA is still serving as the dynamic resistance while the KLCI has not broken away from its downtrend. Meanwhile, the Bollinger Bands contracted 15%, suggesting that the KLCI is indeed trendless.

As indicated by B, total market volume increased 16.4%, with volume getting closer to the 40-day VMA level. However, overall market is still lightly participated. In short, volume above the 40-day VMA level is need if the KLCI should break away from its downtrend..

As indicated by C, the Stochastic stays above 70%, suggesting that the short term movement of the KLCI is still on the positive side. Therefore, the short term movement of the KLCI is likely to be positive, unless the Stochastic should break below 70%.

In conclusion, the KLCI stays in sideways movement as the Bollinger Bands contracts, and also resisted by the 14, 21, 31 EMA. In short, the KLCI would only regain its strength when the Bollinger Bands should re-expands, with the KLCI staying above the Bollinger Middle Band.

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