Composite Index closed mixed on Monday with a mild gain of 0.56 point. As appeared in the chart above, KLCI remained supported by the 906 WinChart Automatic Fibonacci Retracement line. However, it is still situated below the 10 days Bollinger middle band which is also the dynamic resistance for KLCI. (Study A)

Based on the current total market volume, the market activities is seen to be quiet, with the market volume on Monday standing at 3.2 million lots; below the 40 days Volume moving average. (Study B).

On a positive note, with the KLCI now supported above the 906 WinChart Automatic Fibonacci Retracement, we see the MACD histogram is slanting higher gradually. Although this is not any bullish divergence signal, it suggests that the bearish bias is getting weaker. Therefore, if the KLCI is supported above the 906 level, we might see a clear round bottom signal from the histogram. (Study C)

Copyright 1997-2005 Straits Index (M) Sdn Bhd, All Rights Reserved