Meanwhile, the Bollinger Bands contracted 1%, and this suggests a consolidation signal for the KLCI. Technically, when the Bollinger Bands is contracting, it means that the KLCI is preparing for a new movement, until the re-expansion of the Bollinger Bands.

As indicated by B, total market volume increased 1.26%, with volume below the 40-day Volume Moving Average. In other words, total market participation is still relatively low, and the market sentiment is less likely to sustain if volume should stay low.

As indicated by C, the Stochastic stays above 70%, in the short term bullish territory. This suggests that the short term movement of the KLCI is bullish biased.

In conclusion, the overall KLCI uptrend remains intact as the 14, 21, 31 EMA is still serving as the dynamic support. If the Bollinger Bands should re-expands with the KLCI above the Bollinger Middle Band, there is a good chance that the KLCI would test the 1532 resistance. Other wise, if the Bollinger Bands should re-expand with the KLCI below the Bollinger Middle Band, the short term bullish movement of the KLCI would be affected.

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