As indicated by A, the FBMKLCI tested the 14, 21, 31 EMA again on Monday, but failed. Gaining only 1.3 points or 0.09%. Resistance for the KLCI remains at 1537.77 WinChart Automatic Fibonacci Retracement while the support is still at 1513.56 WinChart Automatic Fibonacci Retracement .

Meanwhile, the Bollinger Bands is still contracting (contracting 39%), and this suggests that the KLCI is at a consolidation mood.

As indicated by B, total market volume fell 9.81%, with volume below the 40-day Volume Moving Average. This suggests that the market is still quiet, as inflow of fresh capital is also low. Therefore, without sufficient market participation, the KLCI is less likely to regain its strength.

As circled at C, the Stochastic breaks above 30% by margin. However, this is not yet a reversal signal, but merely only a signal suggesting that the short term movement of the KLCI might be breaking away from its bearish biased territory. Technically, the Stochastic would have to break above 70%, in order to trigger a short term bullish signal.

In conclusion, with the KLCI below the 14, 21, 31 EMA as well as theh Bollinger Middle Band, the technical outlook for the KLCI is on the lower side. Coupled with low volume, the KLCI is likely to stay in its consolidation mood with some weakness.

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