The KLCI rebounded 11.20 points, after being supported by the 38.2% WinChart Automatic Fibonacci Retracement, and the KLCI closed at 1304.85 points, breaking above the 1300 level. Immediate resistance for the KLCI is at 1308 WinChart Automatic Fibonacci Retracement while the support is at 1292 WinChart Automatic Fibonacci Retracement.

As indicated by A, the KLCI is testing the Bollinger Middle Band, which is the dynamic resistance. If the KLCI should break above the Bollinger Middle Band, it would break away from the bearish biased short term movement, and there is a better chance of resuming its uptrend.

As indicated by B, total market volume increased 34.5%, breaking above the 40-day VMA level. This suggests that the market participation is now at a healthy level. Generally, if volume should stay above the 40-day VMA level, the market sentiment is likely to improve.

As indicated by C, the Stochastic rebounded, but still has not broken above 30% level. If the Stochastic should break above 30% level, it would be a beginning of a technical rebound for the KLCI.

In conclusion, the KLCI rebounded from 1292 WinChart Automatic Fibonacci Retracement, which is also the similar level of the 14, 21, 31 EMA. If the KLCI could take out the resistance at the Bollinger Middle Band, the uptrend is likely to resume when the Bollinger Bands should re-expands.

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