Composite Index ended lower on Thursday with a lost of 2.27 points closing at 916.8 points. As indicated in A, 10 days Bollinger Bands continued to contract 9% suggests that the KLCI is still consolidating. At the moment, KLCI is still situated above the Bollinger middle band.

Total market volume, on the other hand, gained 3.1% from Wednesday's volume, stood at 3.91 million lots. However, volume at this level is still below the 40 days VMA level. From a positive point of view, if KLCI were going to advance further after the consolidation, a higher volume above the 40 days VMA level would give a firm confirmation to such move. (Study B)

As shown in C, MACD line continued pointing higher and closer to the signal line. As a result, the MACD histogram is also moving higher. Readers are advice to pay attention to the development of the MACD for a possible crossing signal. But as always, if this signal is confirmed with the Bollinger band signal, it would be a strong signal, or else, the significance of this signal is reduced. (Study C)

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