As indicated in A, the Composite Index is now resisted at around the 920 level. Mean while, immediate support for KLCI falls on the 10 days Bollinger middle band dynamic support. In addition, the 10 days Bollinger band width contracted another 5%, suggesting that the KLCI is indeed still consolidating.

Readers are advised to study the Bollinger band from now on for the longer the consolidation or contraction of the band width would result in a clearer and stronger signal when the band width re-opens.

As shown in B, total market volume on Tuesday gained 16.7%, standing at 3.35 million lots. Volume at this level is closer to the 40 days VMA level, thus suggesting that the market participation is becoming more active. (Study B)

As indicated in the C circle, %K of the Stochastic dropped below the 70% level, which threaten the short-term market sentiment. However, we would like to remind to our readers and users that the %K is a sensitive indicator, therefore, it serves as an early warning signal. Nevertheless, there was not any confirmation to the short-term bullish sentiment at the first place, for the %D has never gone above the 70% level. (Study C)

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