As indicated by A, the KLCI was traded in narrow range again on Thursday, gaining only 1.34 points. The KLCI is still supported by the 14, 21, 31 EMA, thus the immediate technical outlook is still on the positive side.

Meanwhile, the Bollinger Bands contracted 20%, suggesting that the KLCI is still consolidating while the direction is unclear. The consolidation is expected to carry on until the Bollinger Bands re-expands. Support for the KLCI is at 1297 and 1300 level, while the resistances is at 1309.41 followed by 1324.89 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume declined 22.1%, with volume clearly below the 40-day VMA level. This shows that the market is very quiet indeed, thus the KLCI is likely to stay in its sideways movement.

As circled at C, the Stochastic stays above 70%, in the short term bullish territory. Therefore, the market movement for the short term is still positive, until the Stochastic should break below the 70% level.

In conclusion, the KLCI is still consolidating sideways. But with positive technical outlook as it is still above the Bollinger Middle Band as well as the 14, 21, 31 EMA. However, volume is too low, thus the KLCI strength is expected to be low.

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