After breaking above the Bollinger Middle Band as well as the 14, 21, 31 EMA, the KLCI rose 8.28 points on Friday, to close at 1324.31 points. Resistance for the KLCI is at 1325 WinChart Automatic Fibonacci Retracement while the support is at 1309 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands only contracted 2%, and it seems like the Bollinger Bands is about to re-expand. If the Bollinger Bands should expand, with the KLCI above the Bollinger Middle Band, more upside movement is likely for the KLCI.

As indicated by B, total market volume increased 24.7%, with the volume touching the 40-day VMA level. If volume should stay above the 40-day VMA level, the overall market sentiment is likely to improve.

As indicated by C, the Stochastic breaks 70%, entering the short term bullish territory. If the Stochastic could remain above 70%, the short term movement of the KLCI is expected to be on the positive side.

In conclusion, some improvement in the technical picture for the KLCI. In short, the KLCI has to stay above the Bollinger Middle Band, as well as the 14, 21, 31 EMA in order to sustain its improvement.

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