As the Bollinger Bands Width continue to expand, the KLCI gained another 7 points, to close at 1208.28 points on Friday, marking a new high for this year (refer to arrow A). Support for the KLCI is at 1200 psychological level while the next resistance is seen at 1248 WinChart Automatic Fibonacci Retracement.

Generally, during an uptrend, the KLCI has to maintain above the Bollinger Middle Band, with the Bollinger Bands Width expanding, and the uptrend is expected to continue until the contraction of the Bollinger Bands. If the KLCI should break below the Bollinger Middle Band, it would suggest that the KLCI is turning weaker. In other words, the current movement of the KLCI is still bullish, unless the KLCI should break below the Bollinger Middle Band.

As indicated by B, total market volume declined, suggesting a lower investors confidence, and as a result, the uptrend of the KLCI may seen a little bit weak. Nevertheless, this is still normal for the KLCI after its sideways movement, for investors are still waiting on the sidelines while waiting for more fresh leads before taking any positions.

As indicated by C, the Stochastic rose on Friday, while remained above 70% level, which suggests that the short term bullish movement of the KLCI remains intact. Provided that the Stochastic is still above 70%, the bullish movement of the KLCI is expected to sustain.

Despite the lack of market volume, the KLCI ended higher, suggesting that the uptrend is still intact. Due to profit taking activities, losers outnumbered gainers as investor are being cautious as market confidence is still relatively low. But from the technical point of view, the KLCI uptrend remains intact, and the only set back is the lower volume.

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