On Friday, the Bollinger Bands expanded 10%, with the FBM KLCI still above the Bollinger Middle Band, and as a result, the KLCI gained another 9.91 points, closing at 1256.77 points. As indicated by A, the KLCI also broke above the 1248 WinChart Automatic Fibonacci Retracement, and the 1248 WinChart Automatic Fibonacci Retracement is now serving as the support for the KLCI.

As shown on the chart, the Bollinger Middle Band is still the dynamic support for the KLCI, and therefore, if the KLCI should have a technical correction, a rebound at the Bollinger Middle Band is crucial. If the KLCI could rebound from the Bollinger Middle Band, there is a good chance of a resume of the uptrend.

As indicated by B, total market volume declined 16%, but still above the 40-day VMA level, which suggests that the overall market participation is still sufficient. Generally, with volume above the 40-day VMA level, it is likely to help sustain the bullish market sentiment.

As indicated by C, the WinChart RSI broke above 70% level, entering the mid term bullish territory. This suggests that the mid term movement of the KLCI is gaining strength, and provided that the WinChart RSI could remain above 70% level, the mid term bullishness of the KLCI is expected to continue.

The break out above the 1248 WinChart Automatic Fibonacci Retracement is important for the KLCI. If the KLCI could maintain above the 1248 level, the outlook for the KLCI shall remain positive biased. Meanwhile, the Bollinger Middle Band as well as the 14, 21, 31 EMA are still serving as the dynamic support for the KLCI, and provided that these dynamic support are still in place, the KLCI uptrend is expected to continue.

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