As circled at A, the KLCI attempted to break the 972 level, with its intra-day high reaching 976.29 points.
However, the KLCI lost most of its early gains in the afternoon session, closing below the 972 level at 968.58 points. Therefore, the 972 resistance remains intact, while the supports are still at 937 Fibonacci Retracement, followed by the Bollinger Middle Band and T1 dynamic supports.
Meanwhile, the Bollinger Bands Width contracted 2% on Wednesday, suggesting the KLCI is still consolidating, despite closing marginally higher. If the Bollinger Bands Width should continue to contract, the consolidation of the KLCI is expected to continue.
As indicated by B, total market volume increased 3.9%, while still above the 40-day VMA level.This shows that the market is still relatively active but insufficient to support the KLCI break out of the 972 level. Nevertheless, with volume above the 40-day VMA level, the positive market sentiment is likely to sustain.
As circled at C, the MACD histogram is still falling while no rounding bottom is sighted yet. The falling of the MACD histogram suggests that the KLCI short term is still consolidating. Although the KLCI is still above the 200-day MA for the 4th day, it has not yet confirmed its break out, for the KLCI is still resisted by the 972 level.
In short, the KLCI has not yet entered a bull run.Nevertheless, with the KLCI above the Bollinger Middle Band, the immediate outlook for the KLCI is still positive biased.