As indicated by A, despite regional markets are closing lower, the KLCI added another 2.6 points, to close at 1395.02 points. Resistance for the KLCI is still at 1400 level while the support is at 1354 followed by 1340.63 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded 17%, with the KLCI still above the Bollinger Middle Band, thus the Bollinger Bands is still showing a bullish biased signal for the KLCI.

As indicated by B, total market volume declined 15.1%, but still above the 40-day VMA level, suggesting that the market is still relatively actively participated. Again, with the volume above the 40-day VMA level, the market sentiment as a whole is likely to stay positive.

As indicated by C, the Stochastic is still touching 100%, thus the KLCI short term movement is indeed over-heated. Therefore, a pull back is likely to take place in the near term. However, as long as the Stochastic is still above 70%, the short term movement of the KLCI is still bullish biased.

In conclusion, if the Stochastic should break below 70%, it would mark a beginning of a technical correction. But generally, the uptrend of the KLCI is still intact, with the KLCI still above the Bollinger Middle Band, as well as the 14, 21, 31 EMA.

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