As shown on the chart above, the KLCI tested the Bollinger Middle Band, but failed to break above the Bollinger Middle Band. This suggests that despite the rebound, immediate technical outlook for the KLCI remains weak. Nevertheless, with the Bollinger Bands contracting again, the KLCI is expected to consolidate further.

As indicated by B, the Stochastic rebounded, and break above 30%, breaking away from its short term bearish territory. This is a signal suggesting a beginning of a short term technical rebound. If the Stochastic could break above 70%, it would be a short term bullish signal for the KLCI.

As indicated by C, total market volume increased 30.16%, and this suggests some improvement in the market participation. If volume could stay above the 40-day Volume Moving Average, the market sentiment as a whole is likely to improve.

In conclusion, the rebound on Tuesday has helped lifted the technical outlook a little, and if the KLCI could resume to above the 14, 21, 31 EMA, the KLCI would have a chance to resume its long term uptrend.

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