As indicated by A, the KLCI breaks above the Bollinger Middle Band, but resisted by the 853 WinChart Automatic Fibonacci Retracement. Therefore, the immediate support for the KLCI is at the Bollinger Middle Band and the 833 WinChart Automatic Fibonacci Retracement while the resistance is still at 853 WinChart Automatic Fibonacci Retracement.

Although the KLCI is now above the Bollinger Middle Band, the Bollinger Bands Width remains contracting, suggesting the consolidation of the KLCI is still in place.

As indicated by B, total market volume on Wednesday declined 11.4%, while still below the 40-day VMA level. This shows that the market is still relatively quiet as investors confidence is still low. Therefore, the KLCI is less likely to pick some strength if volume should remains relatively low.

As circled at C, the MACD histogram continue to climb with the rounding bottom being intact. This suggests that the short term movement of the KLCI is improving. The short term improvement is expected to continue until the MACD histogram should form a rounding top.

In conclusion, in order to signal bullish movement, the KLCI must remain above the Bollinger Middle Band with the Bollinger Bands Width expanding, together with volume above the 40-day VMA level.

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