As indicated by A, the Bollinger Bands expanded 30%, with the KLCI returning to above the Bollinger Middle Band, thus the immediate technical outlook has improved. The KLCI also tested the 1347.61 WinChart Automatic Fibonacci Retracement, and precisely resisted by the 1347.61 WinChart Automatic Fibonacci Retracement. Therefore, resistance for the KLCI remains at 1347.61~1348.15 WinChart Automatic Fibonacci Retracement while the support is at 1334 followed by 1318.53 WinChart Automatic Fibonacci Retracement.

Technically, if the Bollinger Bands should continue to expand, with the KLCI above the Bollinger Middle Band, the upside movement is expected to carry, until the Bollinger Bands should contract or the expansion rate should reduce.

As indicated by B, total market volume declined 1.1%, with volume remains below the 40-day VMA level. This suggests that the overall market participation is still low, and therefore, the market confidence in general is still weak. In short, this is not the most ideal bullish condition for the KLCI!

As circled at C, the Stochastic continued rising, while staying above 70%, and therefore, the short term bullish signal remains intact, until the Stochastic should break below 70%.

In conclusion, the immediate technical outlook has improved as the Bollinger Bands indicated a bullish biased signal, and the next target for the KLCI is at 1354 WinChart Automatic Fibonacci Retracement.

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