The FBM KLCI rose 0.18 points, closing at 1233.51 points, this is usually the effect of the reduced expansion rate of the Bollinger Bands, as it implies that the KLCI is likely to consolidate (as indicated by A). Support for the KLCI is at 1200 psychological level, while the resistance is at 1248 WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands only expanded 5%, and therefore, the KLCI is likely to consolidate. Currently, the Bollinger Middle Band is the dynamic support for the KLCI, and provided that the KLCI is still supported by the Bollinger Middle Band, the current uptrend is still intact.

Although the KLCI only rose marginally, total market volume increased 48.9%, as gainers out-numbered losers, and volume managed to stay above the 40-day VMA level. Generally, provided the volume is above the 40-day VMA level, the market sentiment is likely to improve which is a positive element for the general market.

As circled at C, the Stochastic moved sideways, but still remain above 70% level, which suggests that the short term movement of the KLCI is still bullish biased. Unless the Stochastic should break below 70% level, the short term bullishness of the KLCI is expected to continue.

In conclusion, the Bollinger Bands expansion rate reduced, thus the KLCI is likely to consolidate. However, gainers lead losers with overall strong market volume, and therefore, the market sentiment as a whole is positive. But still, the Bollinger Bands has to continue expanding to confirm the KLCI rally, while the KLCI must stay above the Bollinger Middle Band.

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