Composite Index ended firmly on Wednesday trading with a gained of 7.66 points or 0.9%. KLCI managed to stay above the T1 dynamic support after yesterday’s technical correction. Therefore, T1 is an important support line. Although KLCI closed higher than the 899.89 points but resistance for KLCI remained at 899.89 of WinChart automatic Fibonacci Retracement for the break out was not entirely convincing. 890.20 WinChart automatic Fibonacci Retracement remained as a support for KLCI. (Refer to A). 

As indicated in B, total market volume decreased another 7.8%, showing an obvious bearish divergence signal. From a technical analysis point of view, continuation of the rally is highly skeptical or at least another technical correction is due to happen. 

As shown in C, ADX continued to slant down despite the bullish signal from the +DI. Therefore, the bullish signal from the +DI remained weak thus sustain of the rally is again in doubt. Nevertheless, the most important element to watch out for is still the T1 support line.

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