The KLCI ended higher on Monday as lifted by the Asian markets positive performance. The KLCI up 1.2%, while returned to above the 900 level. Therefore, as indicated by A, the 887 WinChart Automatic Fibonacci Retracement and the 900 level are now the support for the KLCI while the resistance is still at 940 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the KLCI is still situated above the Bollinger Middle Band dynamic support, and therefore, the immediate outlook is still on the positive side. But still, we have to wait until the Bollinger Bands Width expands to confirm the bullish biased movement.

If the Bollinger Bands Width should expands with the KLCI above the Bollinger Middle Band, it would be a bullish biased signal, other wise, if the Bollinger Bands Width should expands with the KLCI below the Bollinger Middle Band, it would be a bearish biased signal.

As indicated by B, total market volume remains above the 40-day VMA level, suggesting the overall market is still actively participated. Therefore, this is also another positive element for the KLCI.

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 70% level, the short term bullish biased movement for the KLCI is expected to continue.

Generally, based on the current market condition, the KLCI is likely to stay positive provided that there are no negative news for the market.

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