As shown on the chart above, the Bollinger Bands contracted 20%, with the KLCI above the Bollinger Middle Band. The contraction of the Bollinger Bands suggests that the KLCI is still consolidating, but the immediate technical outlook is turning slightly positive as the KLCI breaks above the Bollinger Middle Band.

As indicated by B, total market volume fell 1.86%, but still above the 40-day Volume Moving Average. This shows that the market is actively participated, and if volume should remain high, it implies that the market sentiment is still positive.

As indicated by C, the Stochastic breaks above 50%, and this suggests that the short term technical rebound of the KLCI is still intact. If the Stochastic should break above 70%, it would be a short term bullish signal for the KLCI.

In conclusion, the technical outlook is turning slightly better, as the KLCI is breaking above the Bollinger Middle Band, and also the 14, 21, 31 EMA. If the KLCI should continue to stay above the 14, 21, 31 EMA, the KLCI could have a chance to resume its long term uptrend.

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