Composite Index break out above the 940 psychological level successfully on Wednesday with a gain of 11.26 points, closing at 952.59 points. Immediate support for KLCI falls at the 940 level while further support can be found on the 10 days Bollinger Middle Band dynamic support. (Study A)

As mentioned on our previous analysis, a break out would not be quite possible unless we see total market volume higher than 6 million lots. For today, we had total market volume stood at 8.48 million lots, confirming the break out of the 940 level. We hope to see market volume staying above the 40 days VMA level to maintain the current momentum of KLCI. (Study B)

As indicated in C circle, MACD line did not cross below the trigger line, but instead continued its upward movement. Therefore, no sell signal was triggered. As pointed in C1, long term market sentiment remains positive if the MACD line stays above the zero level.

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