As indicated by A, the FBM KLCI rose 2.62 points, and breaking the L1 resistance line by margin. The immediate support is at 1334 followed by the 1308 WinChart Automatic Fibonacci Retracement while the resistance is at 1354 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 5%, suggesting that the upside volatility of the KLCI is gradually declining, and if the Bollinger Bands should continue to contract, the KLCI would consolidate, or have its technical correction, and the Bollinger Middle Band shall be the first target of the correction for it is a dynamic support for the KLCI.

As indicated by B, total market volume increased 6.6%, with volume above the 40-day VMA level. This suggests that the overall market is still actively participated, thus the positive market sentiment is likely to be sustainable.

As indicated by C, the Stochastic retreated slightly, but it is still above 70%, which suggests that the short term bullish signal is still intact. If the Stochastic should break below the 70% level, it would be a signal suggesting a beginning of a technical correction.

In conclusion, the KLCI only gained 0.2%, and therefore, the L1 resistance is still effective, and there is still a chance of a correction. Nevertheless, provided that the KLCI should remain supported by the 14, 21, 31 EMA, the uptrend is still intact.

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