On Thursday, the KLCI managed to gained another 3.22 points, breaking above the 1354 resistance line. Thus the 1354 level is now the immediate support for the KLCI.

As shown on the chart above, the Bollinger Bands expanded further, with the KLCI above the Bollinger Middle Band, thus the bullish signal remains intact, until the Bollinger Bands should contract.

As indicated by B, total market volume increased 18%, with volume firmly above the 40-day VMA level. Therefore, this suggests that the investor's confidence is improving, and the general market sentiment is also improving.

As indicated by C, the Stochastic stays above 70%, in the short term bullish territory, thus suggesting that the short term movement of the KLCI is still on the positive side. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a technical correction.

In short, despite the expansion of the Bollinger Bands was not significant, the technical outlook for the KLCI remains bullish biased, as it is not only staying above the Bollinger Middle Band, but also the 14, 21, 31 EMA.

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