On Friday, the KLCI rebounded strongly together with the Asian markets after the Dow Jones Industrial Index ended higher. The KLCI gained 34.04 points or 3.4%. Meanwhile, as mentioned on Thursday's analysis, the KLCI rebounded after the long lower shadow candlestick, together with the over-sold condition of the 20-day Bollinger pull-back effect.

As shown on the chart, the Bollinger Bands Width contracted 9% as the KLCI technically rebounded. Also, the KLCI filled up the gap which took place on Tuesday, and in other words, the KLCI is now testing the gap resistance at 1026 level. In addition, the 1037 WinChart Automatic Fibonacci Retracement is the next resistance for the KLCI. Since this is also the level of the Bollinger Middle Band, therefore, it is expected to be a stronger resistance. (Study A). Therefore, despite the strong rebound, the KLCI outlook has not turned bullish.

As indicated by B, total market volume increased 4.3% while staying above the 40-day VMA level. This shows that the market participation overall has improved significantly, and if the volume should remain above the 40-day VMA level, the outlook of the KLCI is likely to improve.

As circled at C, the Stochastic breaks above the 30% and 50% level, suggesting a beginning of a technical rebound signal for the KLCI. This is the signal as mentioned on Thursday's analysis. To be specific, the Stochastic actually broke above the 30% level on Friday morning session, which has suggested a positive movement on Friday.

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