As indicated by A, the FBM KLCI opened lower on Thursday, but it managed to regain its losses and ended the day in the positive territory, gaining 1.74 points to close at 1308.36 points. Resistance for the KLCI is at 1354 WinChart Automatic Fibonacci Retracement while the support is at 1300 followed by 1288 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded 26%, with the KLCI above the Bollinger Middle Band. This suggests that the immediate outlook for the KLCI is still bullish, until the Bollinger Bands should contract.

As indicated by B, total market volume declined 20.5%, but still above the 40-day VMA level. Therefore, this suggests that the overall market is still actively participated. Generally, with volume above the 40-day VMA level, the market sentiment is likely to remain positive as the inflow of fresh capital is still sufficient to off set the selling pressure.

As indicated by C, the MACD histogram ended flat, while showing no significant signal. Nevertheless, if the MACD histogram should start rising, and form a Rounding Bottom, it would be a signal suggesting that the KLCI is still gaining strength.

In short, the KLCI did not affect by the negative performance of the regional markets on Thursday. With market volume above the 40-day VMA level, coupled with the KLCI still supported by the Bollinger Middle Band, the technical outlook for the KLCI is still positive.

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