Meanwhile, the Bollinger Bands only expanded 1%. Technically, with the KLCI below the Bollinger Middle Band, the immediate technical outlook for the KLCI remains on the negative side.

As indicated by B, total market volume increased 5.1%, but still below the 40-day Volume Moving Average. This shows that the market is still relatively quiet, as investors are staying away from the market ahead of the festive holiday.

As indicated by C, the Stochastic remains below 30%, in the short term bearish territory. This suggests that the short term movement of the KLCI is still weak, until the Stochastic could successfully break above 30%.

Due to the shortening of the trading days, some investors are reluctant to take up new positions, and as a result, investors are staying on the sidelines with caution. Generally, the KLCI (or market) is less likely to regain its strength without sufficient inflow of fresh capital, and therefore, the KLCI is likely to consolidate further.

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