Composite Index ended mixed on Friday with a gain of 1.12 points, ended the week at 917.92 points. As indicated by the A arrow, KLCI was supported by the 10 days Bollinger middle band dynamic support. Mean while, 10 days Bollinger band width contracted another 24%, suggesting that the KLCI is still under consolidation. Nevertheless, since KLCI is now located above the middle band, immediate outlook for KLCI is still positive bias.

As indicated in B, total market volume was rather unimpressive with volume standing at slightly over 3 million lots. This could be partly due to the September 11th effect. Anyhow, volume at this level is undoubtedly insufficient to support any upside movement for KLCI. (Study B).

As for the technical indicator, we are seeing the MACD line moving gradually higher again on Friday, and in fact, getting very closed to the trigger line. If the MACD line crosses above the trigger line, it would trigger a buy signal. The buy signal would be much stronger if we see an opening of the Bollinger band width in the coming trading days. (Study C)

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