Meanwhile, the Bollinger Bands contracted 12%, suggesting that the KLCI is indeed consolidating, and the market movement is expected to be unclear. The consolidation of the KLCI is expected to continue until the Bollinger Bands re-expands.

As indicated by B, total market volume fell 7.7%, with volume still above the 40-day volume moving average. This suggests that the market participation is reduced, but still at a healthy level. If market volume should stay above the 40-day volume moving average, it would help to maintain the positive market sentiment.

As indicated by C, the Stochastic rose slightly, but it has not broken above 70%, the KLCI has not returned to its short term bullish signal.

If the Stochastic could break above 70%, it would be a short term bullish signal for the KLCI, and the KLCI could resume its uptrend. Technically, if the Bollinger Bands should re-expand with the KLCI above the Bollinger Middle Band, there is a good chance that the KLCI could re-test the 1500 level.

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