The KLCI rebounded on Friday after being supported by the 1340.63 WinChart Automatic Fibonacci Retracement, the KLCI gained 10.82 points to close at 1360.15 points. As indicated by A, the KLCI is now testing the Bollinger Middle Band, and if the KLCI could break above the Bollinger Middle Band, the immediate technical outlook shall improve.

Other than the Bollinger Middle Band, the KLCI next resistance is at 1370 WinChart Automatic Fibonacci Retracement. Support is at 1340.63 WinChart Automatic Fibonacci Retracement. Meanwhile, the Bollinger Bands did not expand further, suggesting that the KLCI is likely to consolidate.

As indicated by B, total market volume increased 24.8%, with volume above the 40-day VMA level. Overall market is well-participated, and if the volume should stay above the 40-day VMA level with the KLCI rising, the market sentiment is expected to improve.

As indicated by C, the Stochastic breaks above the 30% as well as the 50%, suggesting an improvement of the short term movement. Technically, if the Stochastic could break above 70%, it would be a short term bullish signal.

In conclusion, the KLCI is rebounding from its loss in the earlier week, but it is now testing the Bollinger Middle Band, thus the KLCI has not returned to its bullish territory. In short, the KLCI has to break above the Bollinger Middle Band, with the Bollinger Bands re-expanding, and with strong volume, then the KLCI would resumes its uptrend.

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