The FBM KLCI gained 12.62 point on Monday, to close at 1283.40 points, and as indicated by A, the KLCI also broke above the 1272 and 1276 resistance, and now heading to test the 1288.66 WinChart Automatic Fibonacci Retracement. Support for the KLCI is now at 1276 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 6%, suggesting that the KLCI has not really broken away from its consolidation. But nevertheless, with the KLCI still above the Bollinger Middle Band, the immediate outlook is still positive biased.

As indicated by B, total market volume increased 21.3%, with volume breaking the 40-day VMA level. However, the most actively traded counters are mostly Ramunia and other Second and third liners, and therefore, the increased of volume could not fully reflect the true movement of the market participation. Nevertheless, technically, provided that the volume could remain above the 40-day VMA level, it is usually a positive signal for the KLCI.

As circled at C, the WinChart RSI is still above 50% level, suggesting that the mid term movement of the KLCI is still improving. If the WinChart RSI could break above 70% level, it would be a mid term bullish signal for the KLCI.

In conclusion, the KLCI is still improving together with the improvement performance of the regional markets. Technically, if the Bollinger Bands should re-expand with the KLCI above the Bollinger Middle Band, more upside room is expected for the KLCI.

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