As shown on the chart above, the KLCI rebounded10.02 points on Thursday, closing at 917.89 points. However, the Bollinger Bands Width has not expanded significantly, and therefore, it has not confirmed the bullish signal. Nevertheless, support for the KLCI is at 905 WinChart Automatic Fibonacci Retracement, the Bollinger Middle Band dynamic support as well as the T1 uptrend line, while the resistance remains at 937 WinChart Automatic Fibonacci Retracement.

As indicated by A, the Bollinger Bands Width only expanded 2%, and therefore, insignificant to suggest any bullish signal for the KLCI. Nevertheless, with the KLCI above the Bollinger Middle Band, the immediate outlook for the KLCI is still positive. If the Bollinger Bands Width should expands again, more upside room for the KLCI is expected.

As indicated by B, total market volume increased 16.6% on Thursday, with volume clearly above the 40-day VMA level. This shows that the market is still actively participated, which is an important element for the KLCI to resume its rally.

As circled at C, the MACD histogram is still falling, while showing a rounding top. This suggests that there is still a chance for a short term consolidation for the KLCI, until the MACD histogram should tick up and form a rounding bottom.

With KLCI above the rising Bollinger Middle Band, coupled with volume clearly above the 40-day VMA level, the KLCI is set to resume its bullish biased movement, and the only confirmation needed is the re-expansion of the Bollinger Bands Width.

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