As shown on the chart above, the KLCI is testing the 1332 resistance again. However, as indicated by A, the Bollinger Band width is still contracting, suggesting that the KLCI consolidation is still not ended yet. (Study A) Still, readers are advised to monitor the changes of the Bollinger Band width for if the band width should expands, it would be an end to the consolidation. If the Bollinger Band width should expands with the KLCI staying above the Bollinger middle band, it would be a bullish signal.

Total market volume on Friday increased 4.1% but remained below the 40-day VMA level. This suggested that investors are still on the sidelines in anticipating the shorter trading week ahead, due to the public holidays. Nevertheless, if the KLCI should break above the 1332 resistance, volume must increase to confirm the break out, or else, the break out would be weak and unreliable. (Study B)

As circled at C, Stochastic %K breached above the 70% level on Friday and triggered the first short term bullish signal. If the %D should break above the 70% level, it shall confirm the %K signal, and the market movement for the short term will turn from neutral to bullish biased. (Study C)

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