On Friday, the KLCI rose 7.08 points, to close at 1267.10. The KLCI is now testing the 1270 resistance line, and if the KLCI should break this resistance, the next target would be the 1300 psychological level. Support for the KLCI remains at 1248 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands stopped contracting, this implies that the KLCI consolidation might be coming to an end. With the KLCI still above the Bollinger Middle Band, the immediate outlook for the KLCI is on the positive side, and if the Bollinger Bands should re-expands with the KLCI above the Bollinger Middle Band, there is a good chance for the KLCI to resume its uptrend.

As indicated by B, total market volume increased 3.4%, with volume above the 40-day VMA level. Overall, the market participation is still at a healthy level, but still insufficient to support any rally. In other words, more volume is needed for a healthy uptrend.

As indicated by C, the Stochastic rebounded above 70% level, and therefore, the short term bullish signal remains intact. Provided that the Stochastic should remain above 70% level, the short term movement of the KLCI is still bullish biased.

With the KLCI firmly supported by the 14, 21, 31 EMA, the overall uptrend of the KLCI is still in place. Provided these conditions shall remain unchanged, the current retreat of the KLCI is only considered as a minor consolidation while the uptrend remains unaffected.

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