As indicated by A, the FBM KLCI fell 1.09 points on Wednesday, to close at 1362.74 points. Resistance for the KLCI remains at 1400 level while the support is at 1354 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 6%, suggesting that the KLCI is taking a technical correction or consolidation, until the re-expansion of the Bollinger Bands. Technically, the target of the correction is at the Bollinger Middle Band, and if the KLCI could rebound from the Bollinger Middle Band, the uptrend shall remains intact.

As indicated by B, total market volume fell 26.6% as profit taking takes place. However, volume remain above the 40-day VMA level, suggesting that overall market is still actively participated.

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

In short, the KLCI is likely to consolidate, but the immediate technical outlook shall remains positive as the KLCI is supported by the Bollinger Middle Band as well as the 14, 21, 31 EMA.

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