As indicated by A, the KLCI broke above the Bollinger Middle Band, with the Bollinger Bands Width expanded 27%, the KLCI closed 16.69 points higher on Friday. In addition, the KLCI also broke above the 887 WinChart Automatic Fibonacci Retracement, and therefore, it is now set to test the 900 psychological resistance level. Supports for the KLCI is now 885 and 869 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width expanded, which ended the KLCI consolidation. With the KLCI above the Bollinger Middle Band, the immediate outlook for the KLCI is now bullish biased, and as long as the Bollinger Bands Width is still expanding, the positive movement of the KLCI is likely to sustain.

As indicated by B, total market volume increased 25.9%, and the volume is now touching the 40-day VMA level. This is a positive sign for the market as the market participation is now improving. If volume should sustain above the 40-day VMA level, the KLCI is likely to gain some strength.

As circled at C, the Stochastic continue to rise, breaking above 70% level, entering the short term bullish region. As long as the Stochastic could remain above70% level, the market movement for the short term is expected to be bullish biased.

In short, the expansion of the Bollinger Bands Width with the KLCI above the Bollinger Middle Band was supported with an increased of volume, which is a positive signal. Therefore, the upside biased movement of the KLCI is likely to continue until the Bollinger Bands Width contracts.

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