On Monday, the Bollinger Bands Width expanded 38%, with the FBM KLCI above the Bollinger Middle Band, and as a result, the KLCI gained 11.65 points or 1%, closing at 1190.39 points. As indicated by A, the KLCI broke above the 1186 resistance, and therefore, the immediate support for the KLCI is at 1186 WinChart Automatic Fibonacci Retracement, while the 1200 point is the psychological resistance level.

Based on the Bollinger Bands signal, the KLCI immediate outlook is bullish biased. Therefore, if the Bollinger Bands Width should continue to expand with the KLCI above the Bollinger Middle Band, the KLCI bullish movement is likely to continue, until the Bollinger Bands expansion rate is reduced or the band width contracts.

As indicated by B, total market volume increased 16.3%. Although it is still below the 40-day VMA level, it is volume is getting closer to the 40-day VMA level, thus suggesting an improvement in the market participation. If the market volume should reach the 40-day VMA level, it would be a positive element for which to help the KLCI to sustain its positive movement.

As circled at C, the Stochastic is still rising above the 70% level, suggesting that the KLCI short term movement is still bullish biased. Provided that the Stochastic could maintain above 70% level, the short term bullishness is expected to continue.

After being supported by the 14, 21, 31 EMA, the KLCI is likely to resume its uptrend as the Bollinger Bands Width re-expand with the KLCI above the Bollinger Middle Band, as this is the breaking point mentioned on last Friday's analysis. In short, the immediate outlook for the KLCI is bullish biased, until the Bollinger Bands contracts.

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