The Bollinger Bands expanded 18%, with the FBM KLCI above the Bollinger Middle Band, and as a result, the KLCI ended higher. Nevertheless, as indicated by A, the KLCI is now precisely resisted by 1248 WinChart Automatic Fibonacci Retracement, and therefore, the resistance is still at 1248 WinChart Automatic Fibonacci Retracement while the support remains at 1200 psychological level.

As shown on the chart above, the Bollinger Middle Band is also rising, while still serving as the dynamic support for the KLCI. Provided that the KLCI is well supported by the rising Bollinger Middle Band, the uptrend shall remains intact.

As indicated by B, total market volume increased 34.1%, with volume staying above the 40-day VMA level. This suggests that the overall market participation is improving, thus the market sentiment is likely to be positive. Therefore, this will help the KLCI to sustain its uptrend.

As circled at C, the WinChart RSI is rising gradually, and it is likely to break above 70% level. If the WinChart RSI should break above 70% level, it would be a signal suggesting that the mid term movement of the KLCI is turning bullish.

Although the KLCI rose 1.1%, it is testing the 1248 WinChart Automatic Fibonacci Retracement, which is the 61.8% retracement level between the highest 1524.59 points and the lowest 801.27 points. Generally, this is an important resistance level, and if the market volume should remains strong, there is still a good chance for the KLCI to break above this barrier.

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