As shown on the chart above, the Bollinger Bands only expanded 6%, and if the Bollinger Bands should begin to contract again, it would suggest that the KLCI is going to consolidate again. Nevertheless, with the KLCI still above the Bollinger Middle Band, the immediate technical outlook for the KLCI is positive. Meanwhile, a slight pull back after the T1 break out is also considered normal.

As indicated by B, total market volume increased 23.24%, as trading activities increased. However, if volume should increased associated with the falling of the KLCI, it means that the selling pressure is slightly higher. Nevertheless, more trading volume is needed if the KLCI should test the 1532.

As indicated by C, the Stochastic fell to 70%, and if the Stochastic should fall below 70%, it would mark an end to the short term bullish signal.

In short, the KLCI pullback after breaking above the T1 line, and this pull back is normal. If the KLCI could rebound above the T1 line, together with the increased of volume, the KLCI could re-test the 1532 resistance.

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