Composite Index closed mixed on Wednesday, losing 1.24 points. As indicated in A, the KLCI is still supported by the 10 days Bollinger middle band dynamic support, and as a result, immediate outlook remain cautiously positive. Mean while, the Bollinger band width contracted another 15%, which suggests that the volatility for KLCI is still low.

In additional, it is worth while to mention here that the KLCI has been going sideways in a narrow trading range for the 10th day; thus, when applying the Bollinger band, we shall be able to see a very clear direction for KLCI when the band width re-opens.

Total trading volume for the day stood at 4.3 million lots, a 26.2% gain from yesterday's total market volume. Volume at this level managed to stand above the 40 days VMA level suggesting that the market was relatively active. We hope to see volume maintaining above the 40 days VMA level for it would greatly support and promote any possible rally for KLCI when we have the Bollinger band signal. (Study B)

As indicated in C, the %D line of Stochastic has gone above the 90% level, suggesting that there might be an over-bought sentiment for KLCI. However, since both lines of Stochastic are now situated above the 70% level, market sentiment for the short-term remains bullish. (Study C)

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