Due to the negative performance across the regional markets, the FBMACE ended lower, losing 85.64 points or 1.9%. As indicated by A, the FBMACE is still supported by the Bollinger Middle Band as well as the 4329 WinChart Automatic Fibonacci Retracement. Therefore, it still has not formed a downtrend yet. Supports for the FBMACE remain at the Bollinger Middle Band and the 4329 WinChart Automatic Fibonacci Retracement, while the resistance is still at 4488 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted another 18%, suggesting that the FBMACE is still consolidating. The contraction of the Bollinger Bands has proven that the FBMACE is not forming any new trend yet, and in short, as long as the Bollinger Bands is still contracting, the market direction shall remains trendless.

As circled at B, the Stochastic failed to hold up above 70% level, and therefore, the FBMACE failed to resume its short term bullish movement. If the Stochastic should continue falling, and break below 30% level, it would be a signal suggesting a weakening short term movement for the FBMACE.

As circled at C, the MACD histogram has not formed a Rounding Bottom yet, suggesting that the consolidation continues. If the MACD histogram should continue falling, and break below the zero line, the consolidation of the FBMACE is expected to carry on with bearish biased.

Despite weakening signal from the MACD histogram, the FBMACE is still supported by the Bollinger Middle Band as well as the 4329 WinChart Automatic Fibonacci Retracement. Therefore, technically speaking, the KLCI is only having a technical correction, and not a downtrend yet. However, if the FBMACE should break below the Bollinger Middle Band and the 4329 WinChart Automatic Fibonacci Retracement, the outlook would turn bearish, but still, it has to be confirmed with the re-expansion of the Bollinger Bands.

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