As indicated by A, the FBM KLCI touched the Bollinger Lower Band and rebounded slightly, losing 1.32 points to close at 1307.44 points. Resistance for the KLCI remains at 1309 and 1325 while the support is at 1297 to 1300 level.

As shown on the chart above, the Bollinger Bands contracted 7%, suggesting that the KLCI is still consolidating, and the consolidation shall carry on until the re-expansion of the Bollinger Bands. Then, the direction of the new movement shall be determined by the position of the KLCI above or below the Bollinger Middle Band.

As indicated by B, total market volume increased 12.3%, but still below the 40-day VMA level. This shows that the market is still lightly participated. Also, it implies that the investors' confidence is still low.

As indicated by C, the Stochastic rebounded at 10%, but still below 30%, therefore, the Stochastic is still showing a short term bearish signal for the KLCI, unless the Stochastic could break above 30%.

With the KLCI below the Bollinger Middle Band as well as the 14, 21, 31 EMA, the technical outlook for the KLCI shall remains bearish biased.

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