As shown on the chart above, the Bollinger Bands expanded again, with the KLCI remains above the Bollinger Middle Band, thus the immediate technical outlook for the KLCI is still on the positive side. The KLCI closed at 1328.22 points, upped 10.28 points. Resistance for the KLCI is at 1354 WinChart Automatic Fibonacci Retracement while the support is at 1300 level.

As indicated by A, the KLCI is now testing the L1 resistance line, which was formed since the 20th of October, 2009. Therefore, there might be some selling pressure at this level. Nevertheless, if the KLCI should break above the L1 line, more upside room is permitted.

As indicated by B, total market volume increased 17.1%, with volume 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 rebounded, while staying above the 70% level. Therefore, the short term bullish signal remains intact. Technically, the short term bullishness is expected to carry on until the Stochastic should break below 70% level.

The KLCI is now testing the L1 resistance line, thus expecting some profit taking activities here at this level. But still, as long as the KLCI is still supported by the Bollinger Middle Band, the immediate technical outlook for the KLCI is still on the positive side.

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