Composite Index ended lower, losing 1.53 points to 925.59 points. Although KLCI break below the 10 days Bollinger middle band marginally, it is still supported by the 20 days Bollinger middle band.

On the other hand, according to the historical data, 20 days Bollinger band width rarely contracted this narrow. This is due to the prolonged consolidation or sideways of KLCI. It is the characteristic of the Bollinger bands that the longer the consolidation or the narrower the band width contraction, the wider the opening of the band width in reverse.

As pointed in B, MACD line contacted the trigger line on Friday. This has triggered a sell signal, which serves as the first warning sign that the market sentiment may turn to bearish in the MACD line continues pointing downwards. (Study B)

In line with the MACD signal, %K of the Stochastic also getting very closed to the 30% level. If the %K crossed below the 30% level, it shall issue the first bearish signal. Confirmation of the short-term bearish signal comes when the %D crosses below the 30% level with the %K situating below the 30% level. (Study C)

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