On Tuesday, the KLCI gained 6.75 points to close at 1340.72 points. Resistance for the KLCI is at 1350 point while the support is at 1334 and 1320 points.

As indicated by A, the KLCI managed to break above the Bollinger Middle Band, and therefore, the immediate technical outlook for the KLCI is on the positive side. Meanwhile, the Bollinger Bands has not expanded, suggesting that the KLCI is still consolidating.

As indicated by B, total market volume declined 3%, with volume still staying below the 40-day VMA level. Therefore, the overall market is lightly participated, thus the relatively insufficient market volume implies that investors' confidence is also relatively low.

As circled at C, the Stochastic breaks above 70%, testing the short term bullish territory. If the Stochastic should remain above 70% level, the short term movement of the KLCI is expected to improve further.

In conclusion, technical signals are showing neutral to slightly bullish biased, while volume is still low. Nevertheless, if the Bollinger Bands should re-expand with the KLCI staying above the Bollinger Middle Band, some upside movement is expected for the KLCI, but keep in mind that the volatile regional markets as well as negative external news could have a negative impact to the KLCI performance as well.

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