On Thursday, the FBM KLCI gained 2.82 points to close at 1346.92 points, and the KLCI is set to test the 1350 WinChart Automatic Fibonacci Retracement. If the KLCI could break above this level, more upside movement is expected. Nevertheless, overhead resistance are found at 1350 to 1354 WinChart Automatic Fibonacci Retracement while the supports are at 1334 followed by 1320 WinChart Automatic Fibonacci Retracement.

As indicated by A, the KLCI stays above the Bollinger Middle Band, with the Bollinger Bands expanding 3%, therefore, the immediate technical outlook is still on the positive side.

As indicated by B, total market volume increased 35.8% with volume getting closer to the 40-day VMA level. Generally, if volume should stay firmly above the 40-day VMA level, the overall market sentiment is expected to improve.

As circled at C, the Stochastic remains above 70%, as the short term bullish signal remains intact, and the short term bullish movement is expected to carry on until the Stochastic should break below 70% level.

In conclusion, despite the increased of volume, the Bollinger Bands has not shown any clear bullish signal yet, and therefore, the KLCI bullish signal is yet to be confirmed.

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