Composite Index ended firmer with a gain of 4.97 points to 910.76 points. As indicated in A, KLCI breached above the 10 days Bollinger middle band dynamic resistance. On the other hand, 10 days Bollinger band width contracted 15%, suggesting that the volatility for KLCI likely to decrease, thus KLCI is consolidating. (Study A)

Support for KLCI is now at the Bollinger middle band dynamic support while the next support level would be the important 906 level.

As pointed by B, total market volume on Monday stood at 2.37 million lots, failing to achieve the 40 days VMA level. This is mostly due to the shortening of the trading days on Bursa Malaysia for the festive holiday. In additional, the low volume on Monday failed to give any confirmation to the break-out of the Bollinger middle band, as a result, this break-out was insignificant. (Study B)

%K of the Stochastic broke above the 30% level, giving an unconfirmed signal that the short-term market sentiment might be turning neutral from bearish. If the %D lines crosses above the 30% level, it shall confirm that the short-term bearish sentiment has ended. (Study C)

Copyright 1997-2005 Straits Index (M) Sdn Bhd, All Rights Reserved