As indicated by A, the KLCI ended lower followed by the Monday candlestick with long upper shadow, but the KLCI rebounded precisely at the Bollinger Middle Band, suggesting that the Bollinger Middle Band is still the dynamic support for the KLCI, which would also suggest an end to the KLCI technical correction.

Generally, if the KLCI is still supported by the rising Bollinger Middle Band, the immediate outlook for the KLCI is still positive. If the Bollinger Bands Width should continue to expand with the KLCI above the Bollinger Middle Band, the positive outlook for the KLCI is likely to continue. Resistance for the KLCI is still at 887 WinChart Automatic Fibonacci Retracement while the support is still at 800 level.

As indicated by B, total market volume is still below the 40-day VMA level, suggesting that the overall market participation is still low, as investors are still on the sidelines. To confirm the bullish movement of the KLCI, volume must be above the 40-day VMA level.

As circled at C, the Stochastic breaks below 70% level marginally on Tuesday. If the Stochastic should return to above 70% level in the near term, the short term bullish signal is still intact. If the Stochastic should continue falling, it would suggest that the short term movement of the KLCI is turning weaker.

In short, the Bollinger Middle Band is the target of the pullback effect, which is also serving as the dynamic support for the KLCI. As long as the KLCI is still supported by the Bollinger Middle Band, the immediate outlook for the KLCI is still on the positive side.

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