As shown on the chart, the Bollinger Bands Width expanded 13% with the KLCI staying above the Bollinger Middle Band, up 9.14 points. As indicated by A, the KLCI is breaking above the T1 downtrend line, and it is likely to end the downtrend which lasted for more than 2 months. If the KLCI should continue rising and stay away from the T1, it would confirm the break out of the downtrend.

Meanwhile, if the Bollinger Bands Width should continue expanding, there are more up side room for the KLCI, until the expansion rate declines. Nevertheless, the Bollinger Middle Band is now the immediate support for the KLCI, and another support for the KLCI is seen at 1140 WinChart Automatic Fibonacci Retracement line, while the resistance is at 1172 WinChart Automatic Fibonacci Retracement line.

As indicated by B, total market volume increased 18.4%, and the volume is also staying above the 40-day VMA level, suggesting the overall market is well-participated, thus the KLCI is likely to regain some strength.

As circled at c, the Stochastic is still staying above the 70% level, which is the short term bullish region. Readers are advised to monitor the changes of Stochastic, for if the Stochastic should break below the 70% level, it would be an end to the short term bullish signal.

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