As indicated by A, the KLCI ended 19.14 points or 1.9% higher on Wednesday, after breaking above the Bollinger Middle Band. On Wednesday, the Bollinger Bands Width expanded 30%, with the KLCI above the Bollinger Middle Band, it is showing a bullish signal, suggesting that the KLCI is now resuming its uptrend channel (T1 and T2). Therefore, the Bollinger Middle Band and the T2 line are the dynamic support for the KLCI while the resistance is still at 1053 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume increased 6.7%, while still above the 40-day VMA level. This suggests that the overall market is still actively participated with increased of fresh buying interests to offset the selling pressure. Therefore, as long as the volume is still above 40-day VMA level, the positive market sentiment is expected to continue.

As circled at C, the Stochastic breaks above 70% and 90% level, entering the short term bullish territory, suggesting that the short term movement of the KLCI is now bullish biased. Generally, as long as the Stochastic is still above 70% level, more upside room is expected for the KLCI in short term.

After contracting for 6 days, the Bollinger Bands Width finally re-expanded, with the KLCI above the Bollinger Middle Band, as well as the increased of volume. Therefore, the KLCI has its uptrend conditions intact, and provided that these conditions are still in place, the uptrend is expected to continue until the contraction of Bollinger Bands Width again.

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