Composite Index ended lower with a lost of 9.12 point on Monday. For the day, KLCI broke below the 931 fibonacci support level as well as slightly below the T1 dynamic support. Mean while, 10 days Bollinger bands opened 27% with the KLCI situated below the middle. As a result, immediate outlook for KLCI turn bearish. Nevertheless, support for KLCI now is located at 917 Fibonacci retracement while the resistance for KLCI is at the 10 days Bollinger Middle Band. (Study A)

As indicated in circle B, WinChart RSI is now located below the 50% level. Although it is still situated in the mid-term neutral zone, any readings below the 50% with a RSI line pointing downwards would imply a bearish bias.

With the lost of over 9 index points, %K of Stochastic is now at the zero level, which entered an over-sold zone. Therefore, quite likely we would see a technical rebound. Anyhow, as long as %D is situated below the 30% level, market sentiment in the short-term remains bearish. (Study C)

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