As shown on the chart above, the Bollinger Bands stopped expanding, suggesting that the Bollinger Bands might be contracting. If the Bollinger Bands should begin to contract, it would be a consolidation signal for the KLCI.

As indicated by B, total market volume increased 40.6%, suggesting some increased of market participation. With the volume above the 40-day VMA level, the overall market sentiment is expected to be on the positive side. However, do note that if the KLCI should retreat with higher volume, it would suggests an increased of selling pressure.

As indicated by C, the Stochastic fell to 50%, suggesting some weakening movement for the KLCI short term. If the Stochastic should break below 30%, it would be a short term bearish signal for the KLCI.

In short, due to profit taking, the KLCI is still capped under 1480 resistance, but its uptrend remains unaffected for the KLCI is still above the Bollinger Middle Band, as well as the 14, 21, 31 EMA dynamic support.

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