On Tuesday, the KLCI tested the Bollinger Middle Band, and broken above the Bollinger Middle Band, gaining 5.36 points. Support for the KLCI is at 1257 while the 1288 WinChart Automatic Fibonacci Retracement is still the resistance for the KLCI.

As shown on the chart, the Bollinger Bands expanded 0%, and therefore, it has not confirmed any bullish signal for the KLCI. Nevertheless, if the KLCI should maintain above the Bollinger Middle Band, the immediate outlook for the KLCI shall improve.

As indicated by B, total market volume increased 2.4%, but volume is still further below the 40-day VMA level. This again shows that the market is lightly participated, as investors are still waiting on the sidelines. Generally, a healthy rally of the KLCI should have total market volume break above the 40-day VMA level, or else it is less like that the KLCI to take out the 1288 resistance.

As circled at C, the Stochastic breaks above 70% level, giving a short term bullish signal. Technically, the Stochastic has to stay above the 70% level, in order to sustain the short term bullish signal for the KLCI.

Technically speaking, some improvement seen in technical indicators, as the Stochastic breaks above 70% and the KLCI breaking above the Bollinger Middle Band. However, the Bollinger Bands has to expand to confirm such bullish signal.

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