As indicated by A, the FBM KLCI fell below the Bollinger Middle Band, as Asian markets having their technical correction. The KLCI lost 6.8 points or 0.5%, to close at 1352.91 points. Support for the KLCI is now at 1340.63 while the resistance is at 1370.

As shown on the chart above, despite the KLCI falling below the Bollinger Middle Band, the Bollinger Bands did not expand, thus it has not shown a bearish signal for the KLCI. However, the immediate technical outlook is now negative.

As indicated by B, total market volume increased 13.9%, with KLCI falling, this suggesting some increased of selling pressure.

As indicated by C, the Stochastic fell below 30%, entering the short term bearish territory. If the Stochastic should stay below 30%, the market movement for the short term is expected to be bearish biased.

In short, the technical outlook is now turning negative. If the Bollinger Bands should re-expand with the KLCI still below the Bollinger Middle Band, more downside movement is expected for the KLCI.

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