As shown on the chart above, the Bollinger Bands contracted 11%, and this suggests that the KLCI is still consolidating, until the Bollinger Bands re-expands. With the KLCI above the Bollinger Middle Band, the immediate technical outlook is still positive. If the Bollinger Bands should re-expand with the KLCI above the Bollinger Middle Band, it would be a positive signal for the KLCI.

As indicated by B, total market volume fell 20.73%, but volume is still above the 40-day Volume Moving Average. Overall market is still actively participated and generally, if volume should stay above the 40-day Volume Moving Average, the market sentiment is a whole is expected to be positive.

As indicated by C, the Stochastic remains above 70%, in the short term bullish territory. Therefore, this suggests that the market movement for the short term is still positive.

In conclusion, the KLCI is still consolidating with positive technical outlook. If the KLCI should fall below the Bollinger Middle Band, the immediate positive technical would turn negative. But it would have to be confirmed with the expansion of the Bollinger Bands.

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