Composite Index closed higher, gaining 3.16 points to 913.92 points. As shown on the chart above, the KLCI might be forming a descending triangle patterns with the L1 as the dynamic resistance while the L2 as the support. In additional, support for KLCI remains at the 906 level while the resistance would be at the 917.57 Fibonacci retracement line.

Despite KLCI advanced a total of 8.13 points for this short trading week, Bollinger band width, on the other hand, was contracting. Therefore, according to the Bollinger bands, direction for KLCI remains unclear until a re-opening of the band width. (Study A)

As pointed out in B, total market volume on Wednesday was only at 2.26 million lots, far below the 40 days VMA level. This is no doubt caused by the long festive holiday. Anyway, volume as such gives doubts that the KLCI is likely to continue its upward movement. (Study B)

As shown in C, the MACD histogram continues its upward momentum, and presently, no visible round top pattern is forming. Therefore, this technical rebound shall continue. If the MACD line crossed above the trigger line, it will issue a buy signal. Nonetheless, if the Bollinger band width by then is still contracting, significant of the signal from the MACD would be reduced. (Study C)

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