As the Asian markets closing higher, due to the overnight gains of the Dow Jones Industrial Average Index, coupled with the positive factors from the 2009 Budget, the KLCI rose 30.04 points or 2.8% as indicated by A. In addition, the KLCI breaks above the 1089 resistance and therefore, the next resistance for the KLCI would be at 1120 WinChart Automatic Fibonacci Retracement. Support for the KLCI remains at 1064 followed by the 1035 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the KLCI broke above the Bollinger Middle Band soon after the market opened, which suggests a positive sign as the KLCI is now above the dynamic resistance.

As indicated by B, total market volume increased and managed to break above the 40-day VMA level, suggesting that the overall market participation is now active. Generally, this is a positive sign as the higher inflow of fresh capital would help the KLCI in breaking resistance.

As circled at C, the MACD histogram continued rising and breaking above the zero level and now on the positive region, which is a bullish signal for the MACD. This suggests that the KLCI movement is getting better, and the improvement is expected to continue until the MACD histogram forms a rounding top.

Nevertheless, it is important to note that the Bollinger Bands Width is still contracting, in other words, if the Bollinger Bands Width should expands with the KLCI remain above the Bollinger Middle Band, together with the increasing market volume, the KLCI positive movement is likely to continue.

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