The KLCI ended higher on Thursday, as lead by the positive performance of the Asian markets, the KLCI closed at 1329.84 points, upped 9.27 points, and marked a 26 months new high. As indicated by A, the KLCI tested the 1334.34 WinChart Automatic Fibonacci Retracement resistance but failed to break above this level. Therefore, the L1 uptrend resistance line and the 1334.34 WinChart Automatic Fibonacci Retracement is still the resistance for the KLCI while the support is at 1308 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded 17%, with the KLCI above the Bollinger Middle Band, therefore, the Bollinger Bands suggests a bullish signal for the KLCI, until the Bollinger Bands expansion rate should reduce or the Bollinger Bands is contracting.

As indicated by B, total market volume fell 16%, despite the KLCI breaking new high. Fortunately, volume managed to stay above the 40-day VMA level, suggesting that the market is still relatively active and technically, if volume should stay above the 40-day VMA level, we assume that the market sentiment as a whole is still positive.

As circled at C, the WinChart RSI stays around 50% level while moving slightly higher. This suggests that the mid term strength of the KLCI is slightly on the positive side but technically, the WinChart RSI has to break above 70% level in order to signal a mid term bullish signal.

In conclusion, the immediate technical outlook for the KLCI remains positive as the Bollinger Bands is expanding. Meanwhile, the Bollinger Middle Band shall continue serving as the dynamic support, an the KLCI is set to test the 1334 and L1 resistance line, but volume has to pick up in order to sustain the rally.

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