As indicated by A, the Bollinger Bands Width expanded 24% with the KLCI above the Bollinger Middle Band, and as a result, the KLCI ended higher, but resisted by the 1053 WinChart Automatic Fibonacci Retracement. If the Bollinger Bands Width should continue to expand with the KLCI remains above the Bollinger Middle Band, there is a good chance for the KLCI to break above 1053.

As shown on the chart above, the T1 and T2 uptrend channel is still intact, with T2 and Bollinger Middle Band serving as the dynamic supports for the KLCI while the resistance is still at 1053 WinChart Automatic Fibonacci Retracement. If the KLCI should break above 1053, the next resistance shall be at 1077 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume increased 58.7%, returning to above the 40-day VMA level. This shows that the KLCI is once again fueled by fresh inflow of capital, thus a positive element in sustaining the KLCI uptrend.

As circled at C, the Stochastic is still above 70% level, suggesting the short term movement of the KLCI is still bullish biased. If the Stochastic should break below 70% level, it would be a signal suggesting a beginning of a technical correction.

In conclusion, the increase of volume has lifted the market sentiment, and it also confirmed the bullish Bollinger Bands signal. The uptrend of the KLCI is intact, and the immediate outlook for the KLCI is still positive, until the Bollinger Bands Width should contract, then it would be a signal suggesting a consolidation for the KLCI.

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