As indicated by A, the Bollinger Bands Width expanded 52% on Monday, with the KLCI above the Bollinger Middle Band; therefore, suggesting a bullish biased signal for the KLCI. Meanwhile, the KLCI also break above the 900 psychological resistance level, and the next resistance is at 920 level while the 900 point is now the immediate support.

As shown on the chart above, as long as the Bollinger Bands Width is still expanding, with the KLCI above the Bollinger Middle Band, the outlook for the KLCI is likely to be bullish biased. If the Bollinger Bands Width should contract, it would be a signal suggesting a consolidation.

As indicated by B, total market volume increased 66.7% on Monday, with the volume clearly above the 40-day VMA level. This shows that the market participation is now sufficient, and the stronger volume is likely to lift the market sentiment.

As circled at C, the MACD continue rising, suggesting that the KLCI longer term movement is still improving. Meanwhile, the MACD histogram is also rising while forming a rounding bottom. This shows that the short term movement of the KLCI is also gaining strength. Therefore, the positive movement of the KLCI is likely to continue until the MACD histogram should form a rounding top, which by then, it would be a signal suggesting a technical correction.

Technically speaking, the KLCI chart is looking positive, and as long as the volume should remain above the 40-day VMA level, the bullish biased movement is likely sustain; until, the Stochastic should break below 70% level.

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