As shown on the chart above, the Bollinger Bands contracted 23%, and this shows that the KLCI is consolidating; however, immediate technical outlook for the KLCI remains weak, as it is still below the Bollinger Middle Band.

As indicated by B, total market volume fell 23%, and it is now below the 40-day volume moving average. This shows that the market is generally in-active, or it implies that the sentiment is weakening. Generally, when volume is low, the KLCI is likely to consolidate.

As indicated by C, the Stochastic breaks above 50%, as the short term movement of the KLCI picks up a little strength. Technically, the Stochastic has to break above 70% in order to signal a short term bullish movement for the KLCI.

Immediate technical outlook for the KLCI remains weak as it is still testing 1500 and also resisted by the 14, 21, 31 EMA. But it is still too soon to call for a valid downtrend for the KLCI.

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