As indicated by A, the KLCI broke above the 972 resistance, closing 10.06 points or 1% higher at 978.64 points. Therefore, the 200-MA is now the immediate support for the KLCI, while the next resistance is seen at 993 WinChart Automatic Fibonacci Retracement or the 1000 important psychological level.

Despite the KLCI closing higher, the Bollinger Bands Width did not expand. Nevertheless, if the Bollinger Bands Width should expands with the KLCI above the Bollinger Middle Band, more upside room is expected for the KLCI. Both the Bollinger Middle Band and T1 line are still the dynamic support for the KLCI.

As indicated by B, total market volume increased 23%, suggesting investors' interest is back to the market after a consolidation. Provided that the volume is still higher above the 40-day VMA level, the KLCI is likely to sustain its uptrend.

As circled at C, the MACD histogram is still falling but with a slower rate, therefore, it might be forming a rounding bottom. If the MACD histogram should form a rounding bottom, it would be a signal suggesting an end to the consolidation, and the KLCI is expected to return to its rally.

The KLCI rally continues with important criteria, which are volume above the 40-day VMA level as well as the KLCI supported by the rising Bollinger Middle Band. The only missing signal is the expansion of the Bollinger Bands Width. Therefore, if the Bollinger Bands Width should expand, KLCI is likely to have more upside movement.

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