The KLCI attempted to break the 1272 WinChart Automatic Fibonacci Retracement but still closing at 1270.78 points. As indicated by A, the KLCI was resisted by the 1276 WinChart Automatic Fibonacci Retracement on Thursday, and therefore, the 1276 and 1272 WinChart Automatic Fibonacci Retracement shall remain as the resistance for the KLCI while the support is at 1266.45 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 6%, suggesting that the KLCI bullish momentum has failed to gain strength. If the Bollinger Bands should contract again, the KLCI is expected to return to its consolidation. Nonetheless, provided that the KLCI is still staying above the Bollinger Middle Band, the immediate outlook for the KLCI is still on the positive side.

As indicated by B, total market volume increased 33.4%, while the volume is getting closer to the 40-day VMA level. Generally, if volume should break above the 40-day VMA level, the market sentiment is expected to improve.

As indicated by C, the Stochastic started falling, but still above the 70% level. Therefore, this suggests that the short term movement of the KLCI is still bullish biased. If the Stochastic should break below 70% level, it would be an end to the short term bullish signal.

In conclusion, since the rebound from 1224.37 points, the KLCI has gained 50 points, and it is normal to have a correction, but as long as the KLCI should remain above the Bollinger Middle Band after its correction, there is still a chance that the KLCI would resume its uptrend. If the KLCI should break below the Bollinger Middle Band, the immediate outlook would turn bearish bias.

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