The KLCI rebounded on Monday, after being supported by the Bollinger Middle Band, and the KLCI gained 5.63 points to close at 1339.61 points. As indicated by A, the KLCI tested the L1 resistance line again, and the L1 line remains as the immediate resistance to the KLCI.

For the mean time, the Bollinger Middle Band and the 1334 WinChart Automatic Fibonacci Retracement are the support for the KLCI, and the resistance is seen at 1348 and 1354 WinChart Automatic Fibonacci Retracement. Meanwhile, the Bollinger Bands contracted 10%, suggesting that the KLCI is still consolidating, and the consolidation shall continue until the Bollinger Bands re-expands.

As indicated by B, total market volume declined 11.8%, but still above the 40-day VMA level. Therefore, the market as a whole is still actively participated, and it is believed that the overall market sentiment is still positive.

As indicated by C, the Stochastic returned to 70%, re-entering the short term bullish territory. If the Stochastic could remain above 70%, the market movement for the short term is expected to be positive.

In conclusion, the KLCI is still supported by the Bollinger Middle Band, thus technically, the immediate outlook is still positive.

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