On Wednesday, the KLCI gained 4.67 points to close at 1311.75 points. As indicated by A, the KLCI broke above the 1309 WinChart Automatic Fibonacci Retracement, and therefore, the 1309 is now the immediate support for the KLCI while the resistance is at 1325 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded 0%, suggesting that the Bollinger Bands could re-expand. However, due to the KLCI is still below the Bollinger Middle Band, the immediate technical outlook is still on the negative side.

As indicated by B, total market volume declined 13.3%, and as a result, volume is still below the 40-day VMA level, suggesting that the overall market is still quiet. With such low volume, the market sentiment is likely to stay weak.

As indicated by C, the Stochastic breaks above 30%, signaling a beginning of a technical rebound for the KLCI. However, the short term movement of the KLCI is not yet bullish yet.

The rebound of the KLCI has lifted the KLCI to test the Bollinger Middle Band as well as the 14, 21, 31 EMA. If the KLCI should remain resisted by these dynamic resistance, the technical outlook shall remain bearish biased.

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