As the regional markets rebounded, the KLCI picked up 7.35 points (as indicated by A), to close at 1278.31 points. Support for the KLCI remains at 1270 WinChart Automatic Fibonacci Retracement while the resistance is at 1300 psychological level.

As shown on the chart above, the Bollinger Bands stopped contracting, and expanded 1%, suggesting that the consolidation of the KLCI might be coming to an end, and the KLCI is likely to resume its uptrend movement, as the KLCI is still above the Bollinger Middle Band.

As indicated by B, total market volume increased 36.1% as the KLCI rebounded. This suggests that investors are taking advantage of the market rebound, causing the volume to break above the 40-day VMA level. If the KLCI should resume its uptrend with volume firmly above the 40-day VMA level, the outlook for the KLCI should be positive.

As indicated by C, the Stochastic remains above 70% level, suggesting that the KLCI short term movement is still bullish biased. Provided that the Stochastic is still above 70% level, the bullish biased movement of the KLCI is likely to continue.

In short, if the KLCI should remain supported by the Bollinger Middle Band, the Bollinger Bands is expected to re-expand in the near future, and then, it would be a bullish signal for the KLCI. If volume should remains above the 40-day VMA level, it would add strength to the KLCI bullish signal and the KLCI is likely to test the 1300 resistance level.

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