Composite Index ended lower on Monday, losing 2.39 points to 911.53 points. As indicated in A, KLCI is supported by the 10 day Bollinger middle band dynamic support while resisted by the upper band. Resistance for KLCI remains at the T1 dynamic resistance. 

Due to the contraction of the Bollinger band width, KLCI is still at a consolidation phase where the volatility is habitually lower. Nonetheless, since the KLCI is now situated above the middle band, immediate outlook for KLCI is on the positive bias.

As shown in B circle, both %D and %K are now above the 30% level, which suggests that the short-term bearish sentiment is over. At the moment, Stochastic suggests that the short-term sentiment for KLCI is at neutral. (Study B)

Mean while, as pointed in C, MACD does not trigger any buy signal. Even so if we see the MACD line triggered a buy signal, it would be a good idea to confirm with the Bollinger band width. If the band width is still contracting, reliability of the MACD signal is reduced. (Study C)

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