The FBM KLCI broke above the 1248 WinChart Automatic Fibonacci Retracement to touch its daily high of 1256.59 points, but however, as profit taking activities take place, the KLCI failed to sustain its gain, and remained resisted by the 1248 WinChart Automatic Fibonacci Retracement (As indicated by A). The 1248 WinChart Automatic Fibonacci Retracement is the 61.8% retracement of the high or 1524.69 and the low of 801.27 points, which is an important resistance level. Support for the KLCI remains at 1200 psychological level.

As shown on the chart above, the Bollinger Bands expansion rate is only 1%, this suggests that the KLCI is likely to consolidate after rising about 50 points. Nevertheless, provided that the KLCI is still supported by the Bollinger Middle Band, the uptrend remains intact.

As indicated by B, total market volume increased 8.3%, with volume above the 40-day VMA level. This suggests that the overall market is actively participated, and it is likely to sustain the current positive market sentiment.

As indicated by C, the Stochastic retreated but remains above 70% level. This suggests that the short term movement of the KLCI is still bullish biased, until the Stochastic should break below 70% level.

Despite the Dow Jones Industrial Average breaking above 10,000 mark, the KLCI is still resisted by the 1248 WinChart Automatic Fibonacci Retracement. This is a sign suggests that the overall market confidence is still insufficient. Nonetheless, with volume remains above the 40-day VMA level, the current market sentiment is still on the positive side.

In short, the short term bullish movement of the KLCI is still on the bullish side, for the Stochastic is still above 70% level together with the KLCI above the Bollinger Middle Band. Provided that the external factor should remains unchanged, the uptrend for the KLCI shall remain intact.

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