As indicated by A, the KLCI rebounded on Wednesday, breaking above the 1324.89 WinChart Automatic Fibonacci Retracement to close at 1329.70 points, upped 6.26 points or 0.5%. Support for the KLCI is at 1324.89 as well as the 14, 21, 31 EMA, while the resistance is at 1350 level.

Meanwhile, the Bollinger Bands expanded only 5%, but with the KLCI above the Bollinger Middle Band, the immediate technical outlook shall remains bullish biased.

As indicated by B, total market volume only increased 1.8%, and therefore, it is still below the 40-day VMA level, suggesting that the overall market is still lightly participated. Technically, when the KLCI or the market rally, it has to confirm with the strong volume, or else, the rally is less likely to be sustainable.

As circled at C, the Stochastic stays above 70%, in the short term bullish territory. Therefore, the market movement for the short term is still positive, until the Stochastic should break below 70% level, then it would be a signal suggesting a beginning of a technical correction.

In short, with the KLCI above the Bollinger Middle Band as well as the 14, 21, 31 EMA, the immediate technical outlook is still positive.

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