As indicated by A, the FBMKLCI has its daily high reaching 1210 points, but profit taking pushes it lower to close at 1201.28 points. As a result, the KLCI stays above the 1200 level, and if the KLCI should remain supported by 1200 level, it is likely that the KLCI would test the next resistance at 1248 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width expanded 11%, which is slightly slower than the 14% expansion on Wednesday, as a result, the KLCI failed to rally. However, provided that the KLCI is still above the Bollinger Middle Band, the immediate outlook for the KLCI shall remains bullish biased.

As indicated by B, total market volume increased slightly, but still has not broken above the 40-day VMA level. Therefore, the overall market participation is still insufficient, which in turn, suggesting that the KLCI rally is rather weak. In other words, the KLCI movement will be stronger if volume should increased and break above the 40-day VMA level.

As circled at C, the Stochastic rebounded slightly, while still above the 70% level. This is an important signal for if the Stochastic should break below the 70% level, it would be a signal suggesting an end to the short term bullishness of the KLCI.

Currently, the KLCI is having a mild technical correction as profit taking takes place. However, with the 14, 21, 31 EMA still supporting the KLCI, the KLCI uptrend remains intact, and if the Bollinger Bands Width should expand further, more upside room is expected for the KLCI.

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