The KLCI opened gap up on Monday, breaking above the 1400 resistance line by margin, to close at 1403.15 points, gaining 8.13 points or 0.6%, as indicated by A. Resistance for the KLCI remains at 1400.

Meanwhile, the Bollinger Bands expanded 16%, with the KLCI above the Bollinger Middle Band, this suggests that the immediate technical outlook for the KLCI is still bullish biased.

As indicated by B, total market volume fell 3.5%, with the volume touching the 40-day VMA level. Generally, volume has to be firmly above the 40-day VMA level in order to sustain the bullishness of the KLCI.

As indicated by C, the Stochastic is still touching at 100%, as the KLCI is indeed over-heated, thus a technical correction or some sort of pullback is only healthy. But nevertheless, provided that the Stochastic is still above 70%, the short term movement of the KLCI is expected to be bullish biased.

In conclusion, the Bollinger Bands is still showing a bullish signal for the KLCI as well as the 14, 21, 31 EMA dynamic support is still in place. Thus the uptrend remains intact.

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