The KLCI had its intra-day high reaching 1323.83 points, but it retreated as profit taking took place, and as a result, the KLCI only managed to gain 0.14 of a point, to close at 1319.35 points. Resistance for the KLCI remains at 1334.34 WinChart Automatic Fibonacci Retracement while the support remains at 1308 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded 11%, which is slightly smaller if compared to yesterday's expansion rate, this implies that the upside volatility of the KLCI is still insignificant, but as long as the KLCI is still above the Bollinger Middle Band, with the Bollinger Bands expanding, the immediate technical outlook is still on the positive side..

As indicated by B, total market volume declined 8.7%, but with volume above the 40-day VMA level. Overall, the market participation is still relatively sufficient, and provided that the volume could sustain above the volume, the market sentiment is likely to remains positive.

As indicated by C, the Stochastic retreated after hitting 100% level, but the Stochastic remains above 70% level, which is the short term bullish territory, and therefore, the short term movement of the KLCI is still bullish biased.

In conclusion, with the KLCI above the Bollinger Middle Band, coupled with volume above the 40-day VMA level, the immediate technical outlook for the KLCI is still on the positive side, and the Bollinger Middle Band is still serving as the dynamic support for the KLCI.

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