As shown on the chart above, the Bollinger Bands expanded 15%, with the KLCI below the Bollinger Middle Band, thus the immediate technical outlook for the KLCI turns negative. If the Bollinger Bands should expand further, while the KLCI stays below the Bollinger Middle Band, more downside movement is expected.

As indicated by B, total market volume fell 3.22%, with volume below the 40-day volume moving average. This suggests that the market is quiet, thus showing a weaker market sentiment as a whole. Generally, if volume should stay low, the market is less likely to regain its strength.

As indicated by C, the Stochastic fell 30%, re-entering the short term bearish territory, and if the Stochastic should remain below 30%, more downside movement for the short term is expected.

In conclusion, the KLCI stays below the Bollinger Middle Band with the Bollinger Bands re-expanding, and at the same time, the KLCI is being resisted by the 14, 21, 31 EMA, technical outlook shall stay weak.

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