As indicated by A, the FBM KLCI rose 5.2 points, suggesting that after the support from the Bollinger Middle Band, the KLCI might resume its rally. Therefore, the Bollinger Middle Band is still serving as the dynamic support for the KLCI. Support for the KLCI are still found at 1288 and 1276 WinChart Automatic Fibonacci Retracement while the resistance remains at 1300.

As shown on the chart above, the Bollinger Bands contracted only 2%, suggesting that the Bollinger Bands might be re-expanding soon. If the Bollinger Bands should re-expand with the KLCI remains above the Bollinger Middle Band, it would be another bullish signal for the KLCI and the uptrend shall resume.

As indicated by B, total market volume increased 17%, while firmly above the 40-day VMA level. This suggests that the market is still actively traded as inflow of fresh capital is still sufficient to off set the selling pressure. Therefore, with volume remains above the 40-day VMA level, the market sentiment is general is still positive, thus the KLCI immediate outlook is likely to be bullish biased.

As circled at C, the Stochastic rebounded at 70% level, thus the short term bullish signal remains unchanged. Technical, provided that the Stochastic is still above 70% level, the market movement for the short term shall remain strong.

In conclusion, the KLCI successfully rebounded from the Bollinger Middle Band, which is an important signal, as it suggests that the immediate outlook for the KLCI is still on the positive side. If the Bollinger Bands should re-expand with the KLCI above the Bollinger Middle Band, the KLCI would resume its rally.

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