As shown on the chart above, the Bollinger Bands expanded 7%, and still the expansion rate is gradually reduced, and this implies that the Bollinger Bands could be contracting soon, thus a signal suggesting a consolidation for the KLCI. However, as the KLCI is still 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 4.5%, with volume below the 40-day Volume Moving Average. Again, this shows that the market is quiet as investors are staying away from the market, a head of the festive holiday.

As indicated by C, the Stochastic tested 30%, but it failed to break above 30%. Therefore, the short term bearish signal for the KLCI remains intact, and this suggests that the short term movement of the KLCI is still weak.

In conclusion, as the market is getting quieter, the KLCI also showing signs of a consolidation, but the Bollinger Bands has not started to contract, and therefore, it has not formed the consolidation signal. Nevertheless, technical outlook for the KLCI remains on the negative side as the KLCI is still below the 14, 21, 31 EMA dynamic resistance.

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