As shown on the chart above, the KLCI is still testing the L1 line, while closing sightly above the L1 line, as indicated by A. The KLCI formed a narrow candlestick, suggesting that the direction was indecisive. Nevertheless, support remains at 1334 and 1308 WinChart Automatic Fibonacci Retracement while the resistance is still at 1354 WinChart Automatic Fibonacci Retracement.

Meanwhile, the Bollinger Bands did not expand, suggesting that the KLCI movement is unclear. If the Bollinger Bands should contract again, the KLCI would consolidate, and if the Bollinger Bands should re-expand, with the KLCI still above the Bollinger Middle Band, it would be a bullish biased signal.

As indicated by B, total market volume increased 1.1%, with volume still above the 40-day VMA level. This again suggests that the overall market is well-participated, thus implying that the market sentiment is still positive.

As indicated by C, the Stochastic remains around 90% level, which suggests that the KLCI short term movement is slightly over-heated, but remains in the bullish territory. Therefore, despite the slightly over-heated condition, the short term movement of the KLCI remains bullish biased.

In conclusion, the uptrend for the KLCI is still intact, with some chance of a technical correction. If the KLCI should correct, the Bollinger Middle Band would be the first target, and provided that the KLCI should rebound from the Bollinger Middle Band or the 14, 21, 31 EMA, the uptrend remains intact.

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