As the Dow Jones Industrial Average tested the 10000 mark, the FBM KLCI rallied, gaining4.28 points ot close at 1316.03 points. Support for the KLCI is at 1309 while the resistance is at 1325 WinChart Automatic Fibonacci Retracement.

As indicated by A, the KLCI breaks above the Bollinger Middle Band, suggesting that the KLCI might be regaining its losing ground. If the KLCI should stay above the Bollinger Middle Band, the immediate technical outlook shall return to positive.

As indicated by B, total market volume declined 1.3%, and as a result, volume remains below the 40-day VMA level, suggesting that the local market is still very quiet. Volume above the 40-day VMA level is an important factor for the KLCI to maintain its bullishness.

As indicated by C, the Stochastic breaks above 50%, suggesting some improvement in the short term movement. If the Stochastic should break above 70%, it would enter the short term bullish territory.

The KLCI managed to return to above the Bollinger Middle Band as well as the 14, 21, 31 EMA, giving an improvement to the overall picture of the market condition. However, low volume remains the major set back. Nevertheless, if the Bollinger Bands should expand, with the KLCI above the Bollinger Middle Band, more upside room is likely for the KLCI.

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