As indicated by A, the FBM KLCI rebounded slightly, closing 4.11 points higher at 1207.47 points. Resistance for the KLCI remains at 1248 WinChart Automatic Fibonacci Retracement while the support is still at the 1200 psychological level followed by the 1169 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the KLCI is still staying above the 14, 21, 31 EMA and therefore, the uptrend remains intact, until the KLCI should break below the 14, 21, 31 EMA. Meanwhile, the Bollinger Bands Width expanded only 2%, therefore, the KLCI is consolidating now, until the Bollinger Bands Width should expand clearly. If the KLCI should remain above the Bollinger Middle Band when the Bollinger Bands re-expands, the KLCI is likely to resume its uptrend.

As indicated by B, total market volume increased 12.1%, but still below the 40-day VMA level. This is typical as the KLCI is still consolidating; in other words, if volume should break above the 40-day VMA level when the KLCI regain its strength, it would be a clearer bullish signal.

As indicated by C, the Stochastic rebounded slightly, while successfully staying above the 70% level. Therefore, the short term movement of the KLCI is still bullish biased. If the Stochastic should break below 70% level, the short term bullish signal will come to an end.

The KLCI rebounded above the Bollinger Middle Band as well as the 14, 21, 31 EMA, and therefore, the longer term uptrend for the KLCI remains intact. If the Bollinger Bands Width should re-expands with the KLCI above the Bollinger Middle Band, the KLCI shall resume its uptrend movement. Otherwise, if the KLCI should break below the Bollinger Middle Band, the KLCI might have a risk of turning weak.

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