As indicated by A, the KLCI breaks above the T2 line and the Bollinger Middle Band dynamic resistance, thanks to the stronger rebound of some blue chip counters, which also helped the KLCI breaching above the 887 resistance line. Therefore, the immediate support for the KLCI is at 887 WinChart Automatic Fibonacci Retracement while the next resistance is at 900 psychological level followed by 940 WinChart Automatic Fibonacci Retracement.

As shown on the chart, since the KLCI has broken above the Bollinger Middle Band, the immediate outlook for the KLCI has turn positive. If the Bollinger Bands Width should expands significantly, it is likely for the KLCI to have a “WinChart Bollinger Inversion Signal”, which suggests some strong buying interests that could push the KLCI higher.

As indicated by B, total market volume increased 21.2%, with the volume staying above 40-day VMA level. Generally, the overall market is well-participated, and therefore, this is certainly a positive sign for the market.

As circled at C, the Stochastic breaks above 70% level, entering the short term bullish region, suggesting the market movement for the short term is turning bullish. If the Stochastic should maintain its position above the 70% level, the short term movement for the KLCI is likely to be bullish biased, until the Stochastic should fall below 70% level again.

Lastly, the KLCI is still in a critical position as the Bollinger Bands Width has not expanded. If the Bollinger Bands Width should expands with the KLCI above the Bollinger Middle Band, it would certainly be a positive signal for the KLCI. However, if the Bollinger Bands Width should expands with the KLCI below the Bollinger Middle Band, it would end the current technical rebound.

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