KLCI close 4.24 points or 0.5% lower last week to close at 903.51. As shown in the chart above, KLCI was in a small Descending Trend Channel layout by T1 and T2. Another words, KLCI must break out from the descending trend channel, otherwise KLCI down trend persist.

As pointed by A, KLCI immediate resistance is 905 Fibonacci Retracement and the Bollinger Middle Band (BMB).

Since KLCI was already below the BMB, as Bollinger Band (BB) widen or expand last week, KLCI continues to dip. Normally KLCI will only stop declining  if BB begins to contract.

On Friday last week, the rate of BB expansion reduced, only 4%, this had indicated KLCI the force of mid term down trend is reduced. Anywhere KLCI still need to break out BMB in order for KLCI to turn upwards.

Technical Indicators

Volume
As pointed by B, volume traded in Bursa Malaysia at the par of 40 days Volume Moving Average (VMA) last week, this is ideal for KLCI to turn strong; anywhere KLCI will have to break the BMB first.

MACD
MACD continue to dip since it broke below the zero horizontal line, this had indicated that KLCI mid term is still not bright, until MACD re-surface to the positive region.

RSI
RSI maintain at the level between 30% to 50%; hence KLCI mid term is still weak, until RSI break above 50% and up to 70% (mid term bullish).

STC
The short term indicator STC just below the 30% mark, if STC break out the 30% mark, KLCI would be on a technical rebound or short term up trend.

In a nut shell
KLCI was considered in a (short term) downtrend because it was in the small "Descending Trend Channel", this persist until it breaks away from the down channel. From technical point of view, if KLCI fail to rebound in short period of time, KLCI would turned into mid-long term down trend.

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