As indicated by A, the KLCI opened lower again on Friday morning, but it managed to rebound from the Bollinger Middle Band, and regained most of its early lost. Therefore, the Bollinger Middle Band is still the dynamic support for the KLCI, while the 900 and 940 level are the next resistance levels. Other support is seen at 887 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands Width is still contracting (3%), suggesting the KLCI is still consolidating. Nevertheless, if the Bollinger Bands Width should re-expands again with the KLCI above the Bollinger Middle Band, it would be a positive signal for the KLCI.

As indicated by B, total market volume increased 51.9%, and returned to above the 40-day VMA level. This is a good sign suggesting the market is actively participated again as the KLCI regains its position. If the KLCI should continue to climb with volume above the 40-day VMA level, the positive sentiment is expected to continue.

As circled at C, the Stochastic remains above 70% level, which is the short term bullish region. As long as the Stochastic is still above the 70% level, the short term market movement is expected to be bullish biased.

With the KLCI supported above the Bollinger Middle Band, together with the volume above the 40-day VMA level, the immediate outlook is slightly on the bullish side. The only confirmation to the bullish biased movement would be a clear expansion of the Bollinger Bands Width.

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