As shown on the chart above, the Bollinger Bands expanded 2%, with the KLCI above the Bollinger Middle Band, thus the immediate technical outlook is positive. However, the expansion of the Bollinger Bands on Monday was insignificant, thus unable to be considered as a firm signal.

As indicated by B, total market volume fell 12.1%, with volume near the 40-day VMA level. Generally, if volume should stay below the 40-day VMA level, the market is lightly participated, thus the KLCI is less likely to pick up strength.

As indicated by C, the Stochastic rebounded on Monday, while still above 70%, thus the short term bullish signal is still intact. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a technical correction.

In conclusion, volatility of the KLCI is reducing, as an early sign of a consolidation. But with the KLCI above the Bollinger Middle Band, as well as the 14, 21, 31 EMA, the immediate technical outlook and the uptrend is still intact.

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