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The composite index ended firmer on Thursday, gaining 9.53 points to 906.66 points. As shown on the chart above, the KLCI broke away from the R1 dynamic resistance with high volume, and now resisted by the 906.36 Fibonacci retracement line. (Study A)

Mean while, 10 days Bollinger band width opened 62% with the KLCI situated above the middle band. Provided that the band width remains opening, out look for KLCI is likely to be bullish. However, the KLCI has breached above the 20 days Bollinger upper band by margin. It pays to study a possible pull-back effect for KLCI. This would take place if the KLCI break above the 20 days upper band, usually by more than ?.

Total market volume on Thursday was rather impressive, gaining a handsome 97% from yesterday's total market volume, standing at 808 million shares. This suggests that the overall market is well-participated and confirmed the break out of R1. As long as we see the total market volume staying above the 40 days VMA level, the bullish sentiment for KLCI is still sustainable. (Study B)

%K of the Stochastic has entered the short-term bullish region with the %D still slightly below the 70% level. If the %D can cross above the 70% level, it shall confirm the %K signal. At the moment, %K line suggests that the market sentiment for the short-term is bullish. (Study C)

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