Meanwhile, the Bollinger Bands expanded 9%, with the KLCI above the Bollinger Middle Band, and this suggests that the immediate technical outlook for the KLCI is on the positive side.

Although the immediate technical outlook for the KLCI is positive, total market volume remains low. As indicated by B, total market volume stays below the 40-day Volume Moving Average, and this suggests that the market participation is still insufficient. If the volume should remain low, the KLCI is likely to prolong its sideways consolidation.

As circled at C, the Stochastic remain above 70%, in the short term bullish territory. This suggests that the short term movement of the KLCI is still positive, until the Stochastic should break below 70%.

In conclusion, since rebounding from the 1474 level, the KLCI has taken out the Bollinger Middle Band as well as the 14, 21, 31 EMA resistance. This has helped the KLCI regaining its position in the position territory. However, the lack of market participation is still a major set back for the KLCI.

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