As indicated by A, the KLCI broke above the Bollinger Middle Band and the T2 uptrend line on Tuesday, after successfully rebounded from the 1000 level. With the KLCI above the Bollinger Middle Band, the Bollinger Middle Band is now the immediate support for the KLCI together with the 14, 21, 31 EMA. Resistance for the KLCI is still at 1053 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width is still contracting, suggesting that the KLCI is still consolidating. If the Bollinger Bands Width should re-expand with the KLCI above the Bollinger Middle Band, it would be a bullish signal for the KLCI suggesting more upside volatility.

As indicated by B, total market volume increased 3.4%, while remains above the 40-day VMA level. This shows that the market is still actively traded. If volume should continue to increase, it would help to maintain the current positive market sentiment.

As circled at C, the Stochastic rebounded without breaking below 30% level. If the Stochastic should continue to rebound, and break above the 70% level, it would be a signal suggesting a resume of the short term bullish movement.

Generally, if the Bollinger Bands Width should re-expand after its contraction, it is a signal suggesting a beginning of a new movement. In order for the KLCI to resume its uptrend, the KLCI must stay above the Bollinger Middle Band, with the Bollinger Bands Width expanding, together with substantial increased of volume.

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