As indicated by A, the KLCI broke above the 900 level successfully after consolidated for two days. The KLCI also break above the 905 resistance, and therefore, the next resistance for the KLCI is at 937 WinChart Automatic Fibonacci Retracement while the 905 serves as the immediate support.

As shown on the chart above, the Bollinger Bands Width expanded 11%, with the KLCI above the Bollinger Middle Band; therefore, the immediate outlook for the KLCI is still on the positive side. As long as the Bollinger Bands Width is still expanding, more upside room for the KLCI is expected. If the Bollinger Bands Width should contract, it would be a signal suggesting another consolidation for the KLCI.

As indicated by B, total market volume increased 57.7% on Friday, breaking above the 40-day VMA level. This shows that the market is now actively participated, and if volume should maintain above the 40-day VMA level, there is a better chance for the KLCI to sustain its bullish biased movement.

As circled at C, the Stochastic returned to above 70% level, while the short term bullish signal remains intact. As long as the Stochastic is still above the 70% level, the market movement for the short term is still bullish biased.

To sum up, despite the weaker regional markets, the KLCI rallied with relatively strong volume. Therefore as long as the market should maintain active, the rally of the KLCI is likely to continue, until the Stochastic breaks below 70% level.

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