As indicated by A, the KLCI rebounded on the T2 uptrend line on Thursday, up 8.57 points. Therefore, the T2 line as well as the Bollinger Middle Band are still the dynamic support for the KLCI while the resistance is still at 1077 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width expanded 9%, but the expansion was in significant to signal the end of the consolidation for the KLCI. Nevertheless, if the Bollinger Bands Width should continue to expand, there is a good chance for the KLCI to re-test the 1077 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume declined 27.4%, and as a result, volume fell below the 40-day VMA level. This shows that the market has turned quiet. Generally, if volume should stay below the 40-day VMA level, the KLCI is likely to move sideways with some downside biased.

As circled at C, the Stochastic returned to above 70% level, suggesting that the KLCI short term is still not turning weak. If the Stochastic should remain above 70%, the short term movement of the KLCI is still positive biased.

Despite the expansion of the Bollinger Bands Width, the expansion was insignificant; furthermore, the declined of volume failed to confirm the bullish Bollinger Bands signal. Nevertheless, with the KLCI still supported by the T2 line and the Bollinger Middle Band, the immediate outlook for the KLCI is still bullish biased. If the Bollinger Bands Width should expand further, the KLCI could climb higher.

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