As indicated by A, the FBM KLCI broke above the 1287 WinChart Automatic Fibonacci Retracement, gaining 18.42 points or 1.4%, to close at 1294.44 points. Therefore, the immediate support for the FBM KLCI is at 1294.44 points while the resistance is at 1300 to 1302 level. If the KLCI should break above this resistance, the next resistance is seen at 1320, which is the 23.6% WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 22%, suggesting that the KLCI has rebounded from its massive sell down last week. With the KLCI breaking above the Bollinger Middle Band, the immediate technical outlook is likely to improve slightly.

As indicated by B, total market volume increased 11.9%, but still, it has not broken above the 40-day VMA level, thus, implying that the overall market is still quiet. Therefore, without sufficient market participation, the KLCI does not have the most ideal technical bullish condition yet.

As indicated by C, the Stochastic breaks above 70%, entering the short term bullish territory. If the Stochastic should remain above 70%, the short term movement of the KLCI is expected to improve.

In conclusion, the KLCI has slowly regained its position from a technical rebound into a possible short term bullish movement. However, the Bollinger Bands has not expanded, thus giving no bullish signal yet. Nevertheless, the improvement of the markets abroad is likely to have a positive impact to the KLCI performance.

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