As indicated by A, the Bollinger Bands Width contracted 10%, suggesting the KLCI is still consolidating, despite the KLCI breaking above 853 WinChart Automatic Fibonacci Retracement resistance. Next resistance for the KLCI is at 869 WinChart Automatic Fibonacci Retracement while the supports are found at 853 WinChart Automatic Fibonacci Retracement followed by the Bollinger Middle Band dynamic support.

With the KLCI above the Bollinger Middle Band, the immediate short term outlook for the KLCI is turning positive. Therefore, if the Bollinger Bands Width should expands with the KLCI above the Bollinger Middle Band, it would be a bullish signal for the KLCI.

As indicated by B, total market volume increased 2.6%, but still below the 40-day VMA level. This suggests that the overall market participation is still low. In short, volume above the 40-day VMA level is a must if the KLCI should attempt to rally.

As circled at C, the Stochastic is breaking above the 70% level marginally. Generally, if the Stochastic should break above, and maintain above 70% level, it would be a signal suggesting a short term bullish signal for the KLCI.

Since the KLCI has broken above the Bollinger Middle Band, indicators signals are suggesting the KLCI short term movement is improving. Basically, the we need to see the expansion of the Bollinger Bands Width with volume above the 40-day VMA level to confirm such bullish signal.

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