The KLCI fell 5.7 points, as lead by the negative performance of regional markets. The KLCI closed at 1319.84 points, breaking below the 1325 WinChart Automatic Fibonacci Retracement, thus the 1325 is now the immediate resistance while the support is at 1309 WinChart Automatic Fibonacci Retracement.

As indicated by A, the KLCI is now testing the Bollinger Middle Band, dynamic support, with the Bollinger Bands contracting, suggesting that the KLCI is still consolidating. If the Bollinger Bands should re-expand with the KLCI breaking below the Bollinger Middle Band, it would be a bearish signal for the KLCI.

As indicated by B, total market volume increased 38.%. However, the increased of volume associated with the fall of the KLCI, suggesting some increased of selling pressure. Fortunately, the Bollinger Bands is still contracting, and the KLCI has not formed a downtrend yet.

As indicated by C, the Stochastic breaks below 70%, ended the short term bullish signal. This is also a signal of a technical correction, and therefore, the KLCI short term is expected to be on the weaker side.

In conclusion, the KLCI is now testing the Bollinger Middle Band while it has not formed a downtrend yet, until the re-expansion of the Bollinger Bands.

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