Composite Index ended the Wednesday trading on the positive side with the last-minute buying helped the KLCI to close 0.54 point higher at 922.57 points. As indicated in arrow A, KLCI was precisely supported by the 10 days Bollinger middle band dynamic support, while the band width continued to contract another 19%. Hence, it suggests that the currently volatility of KLCI is still low.

However, we would like to remind our users and readers that with the band width this narrow after a relatively long period, signal of the opening band width is expected to be clear, thus it pays to study the development of the Bolligner band width. (Study A)

Mean while, total market volume for the day also increased 19%, with 5.12 million lots changing hands. This is a good sign for it represents that the market participation is now active. We need to have the volume staying above the 40 days VMA level if the KLCI was to advance. (Study B)

According the Stochastic, both lines of the Stochastic are remaining in the short-term bullish zone, suggesting that the market sentiment for the short-term will still positive. (Study C)

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