Composite Index ended lower on Wednesday giving up 3.21 points at 924.5 points. As indicated in A, 10 days Bollinger middle band is still serving as the dynamic support for KLCI. Mean while, the Bollinger band width contracted 11%, causing a pause to the KLCI upward momentum. (Study A)

Nevertheless, if the KLCI is still supported by the Bollinger middle band, outlook for KLCI remains positive. In addition, KLCI next support level falls on the 917.57 Fibonacci retracement line.

Total market volume for the day stood at 4.63 million lots, standing higher than the 40 days VMA (Volume moving average) level. This suggests that the market participation is still active and if the KLCI is still supported by the middle band, volume at such level shall give a good support for its upward momentum. (Study B)

As circled in C, %K of the Stochastic has dropped below the 70% level marginally, giving a first warning signal suggesting that the bullish sentiment may be over. However, since the %D line is still above the 70% level, giving no confirmation to the %K. Yet, it pays to pay attention and be prepared for a possible sentiment change. In our opinion, it is best to have the %K line rebound above the 70% as soon as possible so that the market sentiment can still be positive. (Study C)

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