As indicated by A, the Bollinger Bands Width expanded 22%, with the KLCI above the Bollinger Middle Band, and the KLCI ended 15.09 points higher to close at 1023.96 points. The expansion of the Bollinger Bands Width suggests that the immediate movement for the KLCI is still bullish biased. If the Bollinger Bands Width should begin to contract, it would be a signal suggesting a consolidation for the KLCI.

Supports for the KLCI are still at 200-day MA as well as the Bollinger Middle Band dynamic support, while the resistance is at 1053 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume increased 32.2%, marking a new high since 4th of April, 2007. The increased of volume has lifted the market sentiment as more fresh buying in the market, and therefore, as long as the volume is still above the 40-day VMA level, the current positive market sentiment is likely to sustain.

As circled at C, the Stochastic continued rising, breaking above 90% level, which is a short term over-bought region. If the Stochastic should start falling after hitting 100% level, it would be a signal suggesting a technical correction is likely to take place. Nevertheless, as long as the Stochastic is still above 70% level, the market movement for the short term is still bullish biased.

KLCI making new higher, volume breaking 2 years new high, and short term over-bought signals from the Stochastic, these are actually the characteristic of a bullish trend. Of course, a risk of technical correction is inevitable, but as long as the KLCI is well supported by the dynamic support (Bollinger Middle Band or the 14, 21, 31 EMA), the uptrend is likely to continue.

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