As indicated by A, the KLCI tested the Bollinger Middle Band, breaking above the 1250 WinChart Automatic Fibonacci Retracement as well. Therefore, the immediate support for the KLCI is at 1250 WinChart Automatic Fibonacci Retracement while the resistance is at 1272 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 5%, suggesting that the KLCI is still consolidating. The consolidation of the KLCI is expected to carry on until the Bollinger Bands re-expands.

As indicated by B, total market volume declined 13.3%, and as a result, it is still below the 40-day VMA level. Therefore, without sufficient market participation, the KLCI is less likely to pick up any strength.

As indicated by C, the Stochastic continued rising suggesting that the KLCI is still having its technical rebound. If the Stochastic should break above 70% level, it would be a signal suggesting that the KLCI is entering its short term bullish movement.

In conclusion, despite the break out above the 1250 WinChart Automatic Fibonacci Retracement, it was not supported by substantial volume, thus the break out is less reliable. Nonetheless, if the KLCI should successfully stays above the 1250 level, it would be a good help for the KLCI movement.

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