The KLCI extended its rebound on Wednesday, gaining 4.6 points to close at 1309.45 points, breaking above the 1308 WinChart Automatic Fibonacci Retracement. As indicated by A, the KLCI had its daily high of 1314.73 points on Wednesday, but retreated slightly as investors took profit, and it closed precisely at the 1308 level, and therefore, the immediate support is at 1308 WinChart Automatic Fibonacci Retracement, while the resistance is at 1334.34 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the KLCI broke above the Bollinger Middle Band, but the Bollinger Bands is still contracting, thus this is not the most ideal bullish technical condition for the KLCI.

As indicated by B, total market volume increased another 25.2%, with volume staying above the 40-day VMA level. This shows that the market participation is now 'sufficient', as it is a sign of improving market sentiment. Technically, if volume should remain above the 40-day VMA level, the positive sentiment is expected to carry on, thus it would help to lift the KLCI.

As indicated by C, the Stochastic breaks above 30% level, giving a signal suggesting a beginning of a technical rebound. Should the Stochastic continue to rise, the technical rebound is expected to carry on.

Despite improving signals, the Bollinger Bands has not expanding, thus the KLCI does not have to most ideal bullish conditions yet. Technically, the KLCI is still under consolidation, until the Bollinger Bands should re-expand.

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