As indicated by A, the FBM KLCI rose 6.99 points, to close at 1267.75 points. Immediate resistance for the KLCI is at 1270 WinChart Automatic Fibonacci Retracement while the support is still at 1248 WinChart Automatic Fibonacci Retracement.

As shown on chart above, the Bollinger Bands expanded 0%, suggesting that the Bollinger Bands has stopped contracting. Therefore, if he Bollinger Bands should begin to expand with the KLCI above the Bollinger Middle Band, it would be a bullish signal for the KLCI, and there is a chance that the KLCI could break above the 1270 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume declined 23%, but still above the 40-day VMA level. Overall, the market is still actively participated, as the inflow of fresh capital is still sufficient. If the KLCI were to test te 1270 level, volume firmly above the 40-day VMA level is needed.

As circled at C, the Stochastic is still rising, while successfully staying above the 40-day VMA level. This shows that the KLCI short term movement is still on the positive side. However, with the Stochastic now reaching 100%, it implies that the KLCI short term might be over-heating, and therefore, a risk of a technical correction in the near term. Nevertheless, provided that the Stochastic is still above 70% after the technical correction, short term bullishness for the KLCI shall remains intact.

In conclusion, the immediate outlook for the KLCI is positive while awaiting for the confirmation of the Bollinger Bands re-expansion. If the Bollinger Bands should expand with with the KLCI firmly above the Bollinger Middle Band, more upside room is expected for the KLCI, until the Bollinger Bands should contract again.

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