Meanwhile, the Bollinger Bands contracted 32%, suggesting that the KLCI is consolidating. However, with the KLCI below the Bollinger Middle Band, the immediate technical outlook is on the negative side. If the Bollinger Bands should re-expand with the KLCI below the Bollinger Middle Band, more downside movement for the KLCI is likely.

As indicated by B, total market volume increased 57.41%, with most of the trading was contributed by the newly listed Petronas Chemicals Group Berhad. Therefore, whether or not if the overall market participation could sustain above the 40-day volume moving average is still hard to tell at the moment. As indicated by C, the Stochastic rebounded slightly, but still below 50%. This shows that the short term movement for the KLCI is still at neutral, and the KLCI has not picked up its strength yet, until the Stochastic could break above 70%.

With the KLCI falling 4.44 points, it is now testing the 31-day EMA again. However, as the Bollinger Bands is still contracting, the direction for the KLCI is somewhat unclear. If the KLCI should break below the 31-day EMA, the technical outlook would be further dampened.

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