After breaking above the 1248 WinChart Automatic Fibonacci Retracement (As indicated by A), the KLCI continued its uptrend, while the 1248 WinChart Automatic Fibonacci Retracement is still the support for the KLCI. Resistance for the KLCI is seen at 1300 psychological level and followed by the 1305 WinChart Automatic Fibonacci Retracement, and it is likely to be a strong resistance ahead.

As shown on the chart, the Bollinger Bands only expanded 1%, but it still managed to gain 4.73 points. Nevertheless, if the Bollinger Bands should begin to contract, it would be a signal suggesting a beginning of a technical correction, and the Bollinger Middle Band would be the first target of the correction.

As indicated by B, total market volume increased 16.3%, with volume firmly above the 40-day VMA level. This suggests that the market is well-participated as inflow of fresh buying interests in improving. With volume maintaining above the 40-day VMA level, the positive market sentiment as well as the KLCI uptrend is expected to sustain.

As indicated by C, the Stochastic is still on the higher side, suggesting that the short term movement of the KLCI is still bullish biased, until the Stochastic should break below 70% level.

In conclusion, with the expansion rate of the Bollinger Bands reduced, it implies that the KLCI is likely to consolidate or having its technical correction, as the KLCI uptrend is gradually slowing down. But still, provided that the KLCI is supported by the Bollinger Middle Band dynamic support, the KLCI uptrend remains intact.

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