As indicated by A, the KLCI breaks above the L2 trend line, and resisted by the 885 WinChart Automatic Fibonacci Retracement, closing 6.66 points higher to 885.47 points. Therefore, the immediate resistance for the KLCI is still 885 WinChart Automatic Fibonacci Retracement while the supports are still at 869 WinChart Automatic Fibonacci Retracement and the Bollinger Middle Band dynamic support.

As shown on the chart above, the Bollinger Bands Width expanded another 15%, suggesting the immediate outlook for the KLCI is still on the positive side. Nevertheless, the Bollinger Middle Band is am important support for the KLCI to sustain this positive movement.

As indicated by B, total market volume increased 56.7%, and further above the 40-day VMA level. This shows that current market is actively participated, thus a sign of improvement of market confidence. Therefore, as long as the volume is still higher above the 40-day VMA level, it would a great help in lifting the market sentiment.

As circled at C, the Stochastic is still above 70% level, which is a short term bullish region. This shows that the short term market movement is still bullish. In other words, there are more upside room for the KLCI short term movement until the Stochastic should break below 70%.

There are three criteria in order to sustain the KLCI rally, which are, firstly, the expansion of the Bollinger Bands Width, KLCI above the Bollinger Middle Band, and finally volume above 40-day VMA level. As long as the above conditions are sustainable, the KLCI is likely to test the next major psychological resistance, which is the 900 mark.

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