As indicated by A, the FBM KLCI gained 9.63 points, to close at 1345.68 points. The KLCI is set to test the 1350 resistance level, which is the high since 4th of May, 2010. Support for the KLCI is at 1325 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 19%, suggesting that the KLCI has not broken away from its consolidation. Therefore, until the Bollinger Bands should re-expand, the direction for the KLCI shall remains unclear.

As indicated by B, total market volume increased 13.8%, with volume staying above the 40-day VMA level. This shows that the market is well-participated, thus the market sentiment is likely to improve if volume should stay above the 40-day VMA level.

As indicated by C, the Stochastic rebounded at 70% level, suggesting that the short term bullish signal remains intact, until the Stochastic should break below 70%.

In conclusion, the KLCI is still consolidating while preparing for a new movement. However, technical indicators are suggesting improving signals, but still needed confirmation from the Bollinger Bands.

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