As shown on the chart above, the Bollinger Bands stopped expanding, and if the Bollinger Bands should begin to contract again, the KLCI would consolidate again. Nevertheless, with the KLCI above the Bollinger Middle Band, the immediate technical outlook is positive.

As indicated by B, total market volume increased 27%, with volume above the 40-day VMA level. This suggests the market activities has increased, and generally, if volume should stay firmly above the 40-day VMA level, the market sentiment is likely to stay positive.

As indicated by C, the MACD line touched the trigger line, as the KLCI started to move sideways, the bullish signal of the MACD is getting unclear. But with the MACD line still above the zero line, the market movement for the mid to long term is still positive.

In short, the KLCI is firmly supported by the 14, 21, 31 EMA which is still serving as the long term uptrend dynamic support, despite the consolidation or the technical correction, therefore, the uptrend is still intact.

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