Composite Index ended mixed on Tuesday, gaining 0.05 points to 904.75 points. As indicated in A, KLCI is now resisted by the 906 Fibonacci retracement line, and the next resistance would be the 10 days Bollinger middle band dynamic resistance. On the other hand, support for KLCI is now located at the 895 Fibonacci retracement line.

10 days Bollinger band width on Tuesday opened only 8%, and if compared to previous days, this number was insignificant. Mean while, if we see a contraction of the Bollinger band width, it will suggest that the KLCI is consolidating.

As shown in B, total market volume has been traded below the 40 days VMA (Volume moving average) level, suggesting that the market participation were considered inactive. (Study B)

As pointed in C, %K of the Stochastic rebounded from the 0% level. At the moment, Stochastic still suggests that KLCI is at an over-sold condition thus a technical rebound is only reasonable. Nonetheless, with two lines of the Stochastic are still below the 30% level, short-term market sentiment remains bearish. (Study C)

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