As indicated by A, the FBM KLCI rebounded from 1297 WinChart Automatic Fibonacci Retracement, gaining 7.58 points to close at 1307.08 points. Therefore, the 1297 is still the support for the KLCI while the resistance is at 1309 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 8% as the KLCI technically rebounded, and the KLCI is likely to consolidate if the Bollinger Bands should continue to contract. However, with the KLCI still below the Bollinger Middle Band, the immediate technical outlook is still on the negative side.

As indicated by B, total market volume increased 38.4%, with volume getting closer to the 40-day VMA level. Generally, volume has to be firmly above the 40-day VMA level in order to suggest a well-liquid market, or else, any rally is unlikely to sustain.

As indicated by C, the Stochastic rebounded and now testing the 30%. If the Stochastic could break above 30%, it would suggests a beginning of a technical rebound.

Despite the rebound on Tuesday, the KLCI is still below the Bollinger Middle Band as well as the 14, 21, 31 EMA, thus the immediate technical outlook remains bearish biased.

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