As indicated by A, the FBMACE fell 0.91 points, while remains in its sideways consolidation. Support for the KLCI is at 1325 WinChart Automatic Fibonacci Retracement while the resistance remains 1350 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 8%, suggesting that the KLCI is still consolidating, until the re-expansion of the Bollinger Bands. Meanwhile, the Bollinger Middle Band is the dynamic support for the KLCI, and with the KLCI above the Bollinger Middle Band, the immediate technical outlook is still on the positive side.

As indicated by B, total market volume declined 5.8%, with volume remains below the 40-day VMA level, this shows that the overall market is still lightly participated, and also implies that the investors' confidence is still low.

As indicated by C, the Stochastic is still above 70% level, which is still in the short term bullish territory. This suggests that the short term KLCI movement is still on the positive side, until the Stochastic should break below 70%, then it would be a signal suggesting a beginning of a technical correction.

In conclusion, the KLCI is consolidating while still supported by the Bollinger Middle Band, as well as the 14, 21 ,31 EMA. Therefore, the technical outlook remains on the positive side, but volume remains low, thus the KLCI is unlikely to pick up any strength.

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