As indicated by A, the KLCI only rose 5.82 points despite having its daily high reaching yet another new high of 1220.47 points, closing at 1218.80 points. This is because the Bollinger Bands Width is contracting. Resistance for the KLCI remains at 1248 WinChart Automatic Fibonacci Retracement while the support is at 1200 psychological level.

As shown on the chart, the Bollinger Bands Width contracted 8%, and therefore, limiting the upside room of the KLCI. Fortunately, the KLCI remains above the Bollinger Middle Band, and the immediate outlook is still positive.

As indicated by B, total market volume increased 8.6%, breaking above the 40-day VMA level. This suggests that the inflow of fresh capital has increased as investors participation is increasing. Therefore, this is a positive element to the KLCI uptrend, and if volume should remain above the 40-day VMA level, the uptrend of the KLCI is more likely to be sustainable.

As indicated by C, the Stochastic is still above 70%, and the short term movement of the KLCI is still bullish biased. The bullish short term movement of the KLCI is expected to continue until the Stochastic should break below 70%.

In conclusion, the uptrend of the KLCI remains intact. With volume returning to above 40-day VMA level, the market sentiment is likely to improve. Therefore, the only confirmation is the re-expansion of the Bollinger Bands Width. Nonetheless, if the Bollinger Bands Width should continue to contract, the KLCI would be consolidating.

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