On Thursday, the KLCI slipped 3.83 points or 0.3% to close at 1325.87 points. As indicated by A, the KLCI is still above the 1325 WinChart Automatic Fibonacci Retracement (76.4% Retracement), while the resistance is at 1350 level.

As shown on the chart above, the Bollinger Bands contracted 2%, suggesting that the KLCI might be consolidating, and the Bollinger Middle Band would be the first target if the KLCI should retreat. If the KLCI should rebound from the Bollinger Middle Band, the immediate technical outlook shall remains on the positive side.

As indicated by B, total market volume increased 9.4% , with volume slightly above the 40-day VMA level. Generally, if volume should stay above the 40-day VMA level, the market sentiment as a whole is expected to improve.

As indicated by C, the Stochastic stays above 70%, suggesting that the short term bullish signal remains intact, until the Stochastic should break below 70%, then it would be a signal suggesting a beginning of a technical correction.

With the Bollinger Bands contracting, the KLCI is expected to consolidate, but with a positive technical outlook as it is still above the Bollinger Middle Band as well as the 14, 21, 31 EMA. Meanwhile, if volume should stay above the 40-day VMA level, the market sentiment is expected to improve.

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