As shown on the chart above, the Bollinger Bands expanded 14%, with the KLCI above the Bollinger Middle Band, therefore, the Bollinger Bands is showing a positive signal for the KLCI. If the Bollinger Bands should continue to expand while the KLCI stays above the Bollinger Middle Band, more upside movement for the KLCI is likely.

As indicated by B, total market volume increased 20%, with volume getting closer to the 40-day volume moving average. If volume should pickup and break above the 40-day Volume Moving Average, the market sentiment in general is expected to improve.

As indicated by C, the Stochastic is still rising, while staying in the short term bullish territory. Therefore, this suggests that the short term movement of the KLCI is still positive, until the Stochastic should break below 70%.

Technical outlook for the KLCI remains positive as the Bollinger Bands is showing a slightly improving signal, and most of all, the KLCI is supported by the 14, 21, 31 EMA.

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