Meanwhile, the Bollinger Bands contracted 6%, and this suggests that the KLCI is still consolidating. However, with the KLCI below the Bollinger Middle Band, the immediate technical outlook is on the negative side.

As indicated by B, total market volume fell 21.35%, with volume below the 40-day Volume Moving Average. This suggests that the market is indeed quiet, as investors shun the equity market. In short, without sufficient market participation, the KLCI is less likely to regain its strength.

As indicated by C, the Stochastic ended lower, after breaking below 50% last Friday. If the Stochastic should break below 30%, it would have entered the short term bearish territory, and it will suggest that the short term movement of the KLCI is going to be weak.

In short, the aftermath of the Tsunami together with the worry of nuclear meltdown in Japan, has further dampened the weakening market sentiment, and with such low participation from investors, the KLCI is likely to stay in its consolidation mood with weakness.

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