The KLCI only managed to gain 0.51 points as the regional market were lower. The KLCI closed at 1346.89 points, and the resistance for the KLCI is at 1347.61~1348.15 WinChart Automatic Fibonacci Retracement, and support is at 1334 followed by 1318.53 WinChart Automatic Fibonacci Retracement.

As indicated by A, the Bollinger Bands expanded 18%, while the KLCI is still above the Bollinger Middle Band, thus the immediate technical outlook is still on the positive side.

As indicated by B, total market volume declined 13.3%, while volume remains below the 40-day VMA level. This again suggests that the overall market is lightly participated, thus implying that the market confidence is still low. Therefore, the KLCI is less likely to pick up any strength.

As circled at C, the Stochastic remains above 70% level, which suggests that the short term bullish signal is still intact. Therefore, the short term movement of the KLCI is expected to be positive until the Stochastic should break below 70% level.

In conclusion, despite the bullish Bollinger Bands signals, the lack of volume has failed to push the KLCI higher. But nonetheless, if the Bollinger Bands should continue to expand, the bullish biased signal shall remain intact, and the KLCI could break the 1348 level.

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