As indicated by A, the FBM KLCI rebounded on Friday, gaining 2.57 points to close at 1336.65 points. Technically, the KLCI has not totally violated the possible formation of a Double Top. Support remains at 1325 while the resistance remains at 1350.

As shown on the chart above, the Bollinger Bands only expanded 4%, suggesting that the KLCI is likely to consolidate from here. Nevertheless, with the KLCI above the Bollinger Middle Band, the immediate technical outlook shall remains on the positive side.

As indicated by B, total market volume increased 27.8%, with volume above the 40-day VMA level. This suggests that the market is well-participated. If volume should stay firmly above the 40-day VMA level, the market sentiment is expected to improve.

As indicated by C, the Stochastic rebounded, while staying above 70%, thus the short term bullish signal remains intact.

With the KLCI still above the Bollinger Middle Band, as well as the 14, 21, 31 EMA, the technical outlook for the KLCI is still positive, but it has to break above 1350 in order to give more upside room for the KLCI.

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