Composite Index ended fraction higher on Monday with a mild gain of 1.15 point. As indicated in A, 10 days Bollinger Band width is still contracting, but only a 3% narrower than last Friday's band width. Therefore, this might imply that the consolidation is going to end soon, and the KLCI is due for a new direction.

As indicated in B, total market volume for the day stood at 3.58 million lots. According to the WinChart standard, volume at this level is still considered insufficient for any rally. However, if compared to the 40 days VMA level, KLCI was only a million lots of shares below the VMA level. (Study B)

MACD triggered a buy signal with the MACD line crossing above the trigger line on Monday. This signal suggests that the KLCI is likely to move higher, and an opening of the Bollinger band width would confirm such signal. Nevertheless, as long as we see the direction of the MACD line pointing upward, it suggests that the sentiment for KLCI is likely to remain bullish. (Study C)

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