Meanwhile, the Bollinger Bands contracted 4%, and this suggests that the KLCI is likely to consolidate, but with the KLCI still below the Bollinger Middle Band, the immediate technical outlook for the KLCI is still on the lower side.

As indicated by B, total market volume fell 3.94%, with volume below the 40-day Volume Moving Average. This shows that the market is indeed quiet, and the lower volume also implies that investors confidence is relatively low at the moment.

As indicated by C, the Stochastic breaks above 50%, and this is a signal suggesting a technical rebound for the KLCI. If the Stochastic could break above 70%, it would be a signal suggesting a short term bullish movement for the KLCI.

In short, the KLCI is having a technical rebound, but to break away from the short term downtrend, the KLCI would have to break above the T1 downtrend line as well as the 14, 21, 31 EMA dynamic resistance.

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