Composite Index ended lower losing 1.32 points to 924.27 points.As indicated in A, 10 days Bollinger bands opened 11% suggesting an increase of volatility. However, since KLCI is now located below the middle band, immediate outlook for KLCI is now negative. If the band width continues to widen, expect more downside movement for KLCI. (Study A)

Nonetheless, resistance for KLCI still remains at 928.78 Fibonacci retracement line as well as the 10 days Bollinger middle band dynamic resistance; while the support for KLCI is at 921.

As circle by B, MACD crossed below the trigger line thus triggered a sell signal for KLCI. As a result, sentiment for KLCI is now bearish. If the MACD line crosses below the zero level, it would suggests that the long term market sentiment will turn from positive to negative bias.

Mean while, as indicated in the C circle, %K of the Stochastic has now dropped below the 30% level, suggests that the short-term market sentiment is now bearish. However, this signal would be much stronger with the confirmation of the %D. Nevertheless, with the %K line situating below the 30% level, market is likely to be bearish in the short-term, unless %K rebound and stay above the 30% level before %D enters the short-term bearish zone. (Study C)

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