As shown on the chart above, t he Bollinger Bands expanded 31%, with the KLCI below the Bollinger Middle Band, thus the KLCI technical outlook is on the bearish side. The KLCI close at 1349.33 points, losing 3.58 points on Thursday. As indicated by A, the support for the KLCI is still at 1340 level while the resistance is at 1370.

As indicated by B, total market volume increased 3.7%, with volume above the 40-day VMA level. This suggests that the market is well-participated. But however, since the increased of volume was associated with the falling of the KLCI, this implies that the selling pressure was stronger as sellers initiated most of the trades.

As indicated by C, the Stochastic rebounded slightly, but still below 30%, thus the short term bearish signal remains intact. Until the Stochastic could successfully break above 30%, the short term movement of the KLCI is expected to be on the lower side.

In conclusion, the technical outlook for the KLCI remains bearish biased. If the Bollinger Bands should continue to expand with the KLCI below the Bollinger Middle Band, more sideways volatility is likely for the KLCI.

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