Composite Index closed mixed on Thursday, losing 1.37 points to 927.12 points. As shown on the chart above, KLCI stubbornly resisted by the 928.78 WinChart Automatic Fibonacci Retracement line after 4 consecutive failed break out attempts. This suggests that the 928.78 level is a strong resistance.

On the other hand, KLCI is also continuously supported by the 10 days Bollinger middle band dynamic support. In addition, 10 days Bollinger band width contracted another 6% suggesting that the volatility for KLCI is low. (Study A)

As indicated in B, WinChar RSI remained at the neutral zone and this is mostly due to the sideways movement of KLCI. However, since the WinChart RSI is still situated above the 50% level, it suggests that there is a slight positive bias for KLCI. (Study B)

With the KLCI showing no strong movement nor clear direction, the MACD was going in line with the KLCI movement. However, it is getting closer to the trigger line and if the MACD line falls below the trigger line, it would trigger a sell signal. Anyway, if the Bollinger band is not showing any down side signal, a sell signal from the MACD would be less significant. (Study C)

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