As indicated by A, the FBM KLCI tested the 1288.66 WinChart Automatic Fibonacci Retracement but failed to close above this level, thus the resistance is still at 1288.66 WinChart Automatic Fibonacci Retracement, while the support is at 1276.38 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded 6%, with the KLCI above the Bollinger Middle Band, thus the immediate outlook for the KLCI is still bullish biased. Generally, provided that the KLCI is still supported by the Bollinger Middle Band, the positive outlook for the KLCI is expected to continue, until the Bollinger Bands should begin to contract.

As indicated by B, total market volume declined 20.2%, with volume below the 40-day VMA level. This suggests that the market participation as a whole is still relatively low. Technically, volume above the 40-day VMA level is an important criteria for the KLCI in order to sustain its bullishness.

As indicated by C, the Stochastic is still staying above 70% level, suggesting 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, the immediate technical outlook for the KLCI is still bullish biased, with the Stochastic above 70%, as well as the support of the Bollinger Middle Band.

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