Meanwhile, the Bollinger Bands started to contract, suggesting that the KLCI might be consolidating. Nevertheless, with the KLCI above the Bollinger Middle Band, the immediate technical outlook is on the positive side.

As indicated by B, total market volume increased 11.3%, but still below the 40-day VMA level. This shows that the market participation is now relatively insufficient, while implying that investors are being cautious while staying on the sidelines.

As indicated by , the Stochastic retreated slightly, after touching 100%. Basically, it is still above 90%, and therefore, the short term movement of the KLCI is still bullish (above 70%).

In conclusion, despite the KLCI inching up slightly, the Bollinger Bands is actually suggesting a consolidation signal for the KLCI. A healthy consolidation is needed in order to sustain the uptrend. Nevertheless, the 14, 21, 31 EMA is still supporting the KLCI, while the overall uptrend remains intact.

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