Composite Index technical rebounded on Wednesday with a mild gain of 0.46 point to 905.21 points. As indicated in A, KLCI is still resisted by the 906 Fibonacci retracement line.

Mean while, 10 days Bollinger band width opened only 1%, which suggests that the KLCI is likely to consolidate. If we see a contraction of the Bollinger band width, KLCI will be likely to sideways. Nonetheless, if the KLCI failed to breach above the Bollinger middle band dynamic resistance, immediate outlook for KLCI remains negative bias.

As shown in B, total market volume for the day stood at 2.96 million lots, which is also situated below the 40 days VMA level. This suggests that the market participation is low, while it is rather normal during a technical rebound or a consolidation phase. (Study B)

As pointed in the C curve, MACD histogram showed the first possible sign of round bottom signal. This suggests that the KLCI is having a technical rebound and temporary reduced any selling pressure. If the histogram continues to go higher, consolidation is expected to continue. (Study C)

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