As indicated by A, the FBM KLCI gained marginally, while remains supported by the Bollinger Middle Band. This shows that the immediate outlook for the KLCI is still on the positive side, and if the Bollinger Bands should expands with the KLCI still above the Bollinger Middle Band, the KLCI is likely to trend up.

Meanwhile, the KLCI is still supported by the 14, 21, 31 EMA long term uptrend dynamic support. In short, provided that the KLCI is still above the 14, 21, 31 EMA, the long term uptrend is still intact. Other than the support from the EMA, the 1200 psychological level remains intact, while the resistance is still at 1248 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume breaks above the 40-day VMA level, coupled with the gainers out numbered losers, it shows that the market participation has improved as inflow of fresh capital is increasing. Provided that the volume is still above the 40-day VMA level, the market sentiment is likely to improve.

As circled at C, the Stochastic breaks above 70% level, entering the short term bullish territory, this suggests that the short term movement of the KLCI is now bullish biased; and provided that the Stochastic can remain above 70% level, the short term bullish biased movement is expected to continue.

Technically, the KLCI outlook is still bullish biased, while waiting for the expansion of the Bollinger Bands to confirm such signal. Therefore, if the Bollinger Bands Width should re-expands with the KLCI remain above the Bollinger Middle Band, coupled with volume above the 40-day VMA level, the KLCI is expected to have yet another rally.

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