As indicated by A, the FBM KLCI breaks above the Bollinger Middle Band, gaining 10.43 points and tested the 1370 resistance on Friday, closing at 1370.56 points. Immediate resistance for the KLCI is still 1370 while the support is at 1340.67 WinChart Automatic Fibonacci Retracement.

The Bollinger Bands expanded 24%, suggesting that the KLCI is volatile; with the KLCI above the Bollinger Middle Band, the volatility is likely to be on the upper side.

As indicated by B, total market volume fell 2.3%, but still above the 40-day VMA level. Generally, the market is well-participated, and it would help to sustain the positive market sentiment.

As indicated by C, the Stochastic breaks above 70%, entering the short term bullish territory, suggesting a short term bullish movement signal for the FBMACE. If the Stochastic should touch 100%, it would be a signal suggesting a temporary over-heated condition.

In short, the KLCI breaks above the Bollinger Middle Band, turning the immediate technical outlook to bullish biased. Therefore, if the Bollinger Bands should continue to expand while the KLCI above the Bollinger Middle Band, more upside movement is expected for the KLCI.

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