Composite ended positively on Wednesday with a gain of 7.43 points. As indicated in A, KLCI break above the Bollinger middle band. This is a very important resistance for KLCI, and now serving as the immediate support for KLCI. As for the new resistance, it is now located at the 931.45 points Fibonacci line.

According to the Bollinger bands, the band width contracted 7%, suggesting that the KLCI is still consolidating.

As shown in B, total market volume on Wednesday has increased 24.4%, while still below the 40 days VMA level. If we see the volume growing above the 40 days VMA in the coming days, chances of KLCI to advance further is greatly increased. (Study B)

As indicated in the C circle, %K of Stochastic has broken above the 30% as well as the 50% level. This suggests that short-term market sentiment has turned to neutral. But since the %K is a very sensitive indicator, this signal is much more confirmed if with see the %D line break above the 30% level.

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