Meanwhile, the Bollinger Bands expanded 10%, with the KLCI above the Bollinger Middle Band. If the Bollinger Bands could continue to expand with the KLCI above the Bollinger Middle Band, more upside movement is likely for the KLCI.

As indicated by B, total market volume only gained 5.62%, despite the strong rebound of the KLCI. Volume remains below the 40-day Volume Moving Average, and this suggests that the market participation is still insufficient, as investors are still being cautious.

As indicated by C, the Stochastic breaks above 70%, entering the short term bullish territory, and this suggests a short term bullish signal for the KLCI.

In conclusion, the KLCI breaks above the T1 downtrend line as well as the 14, 21, 31 EMA, breaking away from the short term downtrend. If the KLCI could stay above the Bollinger Middle Band, or the 14, 21, 31 EMA, the technical outlook for the KLCI shall turn positive. However, the validity of the break out is still questionable, for the volume was insignificant.

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