Meanwhile, the Bollinger Bands has not expanded, and this suggests that the KLCI is likely to stay in its consolidation. Nevertheless, with the KLCI above the Bollinger Middle Band, the immediate technical outlook is now on the positive side.

As indicated by B, total market volume fell 36.48%, with volume below the 40-day Volume Moving Average. This shows that the market is quiet, as investors confidence is still low. Therefore, the KLCI market is less likely to pick up any strength with such low volume.

As indicated by C, the Stochastic remains above 70%, in the short term bullish territory, despite the KLCI retreat on Monday. Technically, if the Stochastic could stay above 70%, it suggests that the short term market movement for the KLCI is still positive.

In conclusion, after breaking above the T1 downtrend line, the KLCI has broken away from the short term downtrend, and currently consolidating. If later the Bollinger Bands should re-expands, with the KLCI still above the Bollinger Middle Band, the KLCI is set to re-test the 1525 resistance again, and likely to pick up some strength. However, this will have to be confirmed with stronger volume.

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