As indicated by A, the KLCI is now above the Bollinger Middle Band, and therefore, the immediate outlook for the KLCI is on the positive side. However, since the Bollinger Bands Width has not expanded, it has not shown any signal of the new movement yet.

Generally, if the Bollinger Bands Width should expands clearly with the KLCI above the Bollinger Middle Band, it would be a bullish biased signal. But if the KLCI should failed to maintain above the Bollinger Middle Band, it would ended the positive signal.

Support for the KLCI is still at 800 psychological mark while the 887 WinChart Automatic Fibonacci Retracement is still the next resistance for the KLCI. Nevertheless, the T1 downtrend line is also the dynamic resistance for the KLCI. In other words, the KLCI has to break above the T1 or the downtrend is still intact.

As indicated by B, total market volume declined another 17.1%, despite the KLCI ended higher on Thursday. This shows that the market sentiment as a whole is still weak, as investors confidence is still relatively low. It is absolutely important to have a significant increase of volume (above the 40-day VMA level) if the KLCI should attempt to break any resistance.

As circled at C, the Stochastic breaks above 70% level on Thursday by margin, entering the short term bullish region. If the Stochastic should remain above the 70% level, the short term market movement for the KLCI is expected to be bullish biased.

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