As indicated by A, the KLCI ended higher on Friday, while remained in the uptrend channel of T1 and T2 line. Resistance for the KLCI remains at 1053 WinChart Automatic Fibonacci Retracement while the supports are at T2 and Bollinger Middle Band dynamic supports.

As shown on the chart above, the Bollinger Bands Width expanded 22%, with the KLCI above the Bollinger Middle Band. Therefore, the immediate outlook for the KLCI is still bullish biased. If the Bollinger Bands Width should continue to expand, more upside room for the KLCI is expected.

As indicated by B, total market volume declined 14.7%, and as a result, the volume is now below the 40-day VMA level. This shows that the market as a whole is relatively quiet, thus a sign of lack commitment of this uptrend. It is important to note that volume above the 40-day VMA level is one of the important condition for the KLCI to sustain its uptrend.

As circled at C, the Stochastic continue rising, above 70% level, which is the short term bullish region. If the Stochastic should break below 70% level, it would be a signal suggesting a beginning of a technical correction.

Despite the KLCI closing at its new high, total market volume declined, instead. Therefore, unless the volume should pick up quickly and return to above 40-day VMA level, the lack of volume is a sign implying that the uptrend is likely to near its end.

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