Meanwhile, the Bollinger Bands is still contracting, and this suggests that the KLCI is still consolidating. However, with the KLCI below the Bollinger Middle Band, the immediate technical outlook for the KLCI is on the negative side.

As indicated by B, total market volume fell 10.66%, and as a result, volume is now below the 40-day Volume Moving Average. Generally, the market is lightly participated, but it is rather normal for the KLCI is consolidating.

As indicated by C, the Stochastic remains below 30% despite the KLCI rebound on Friday. This suggests that the short term movement for the KLCI is still weak, until the Stochastic could successfully break above 30%.

In conclusion, immediate technical outlook is on the lower side, but it is still too soon to call for any bearish trend formation. Nevertheless, if the Bollinger Bands should re-expand with the KLCI above the Bollinger Middle Band, it would have a chance to resume its uptrend. Other wise, if the Bollinger Bands should re-expand with the KLCI below the Bollinger Middle Band, more downside movement is likely for the KLCI.

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