Composite Index ended higher on Monday with a gain of 3.24 points, closing at 925.13 points. As shown in A, 10 days Bollinger band width opened 8% suggesting an increase in volatility, and at the same time, KLCI is still supported by the middle band dynamic support. Therefore, as long as the band width continue to open wider, more upside potential for KLCI is expected. (Study A)

At the moment, KLCI is now facing a resistance at 931.45 WinChart Automatic Fibonacci Retracement line, while the support for KLCI can be found at 917.57, as well as the important support at the 906 level.

As indicated in B, total market volume for the day stood at 4.6 million lots, and it managed to stay higher than the 40 days VMA level. This suggests that the market is active, and we hope to see the volume maintain above the 40 day VMA level in order to sustain the upward momentum. (Study B)

As pointed in C, Stochastic remains above the 70% level, which is also the short-term bullish zone. As a result, short-term market outlook is expected to be bullish until the %K drops below the 70% level. (Study C)

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