On Tuesday, the Bollinger Bands continues to expand, with the KLCI above the Bollinger Middle Band, thus the KLCI continues its rally, gaining another 7.89 points or 0.6%, to closes at 1378.47 points. Resistance for the KLCI is at 4000 points while the support is at 1340.63 WinChart Automatic Fibonacci Retracement.

Technically, with the KLCI above the Bollinger Middle Band, the immediate technical outlook is on the positive side, as long as the Bollinger Bands is expanding. If the Bollinger Bands should begin to contract or the expansion rate decreases, the rally would slow down.

As indicated by B, total market volume increased 14.3%, thus it is still above the 40-day VMA level, suggesting that the overall market is well-participated, and the market sentiment as a whole is expected to stay positive.

As indicated by C, the Stochastic remain above 70%, in the short term bullish territory. Therefore, the market movement for the short term is still bullish biased, until the Stochastic should break below 70%.

The KLCI managed to return to above the 14, 21, 31 EMA, and therefore, the 14, 21, 31 EMA has resumed its role as the dynamic support, and as long as the KLCI is supported by the 14, 21, 31 EMA, the uptrend shall remains intact.

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