Composite Index ended lower, losing 2.55 points to 906.55 points. As indicated in the T2 line, KLCI touched a daily low at 903.3 point and rebounded; the T2 line is currently the support line for KLCI. On the other hand, T1 remains the dynamic resistance for KLCI.

Mean while, 10 days Bollinger band width contracted 5% and therefore, the volatility of KLCI is expected to be lower. In other words, the KLCI is still at the consolidation phase.

As pointed in B, WinChart RSI failed to break above the 30% level, suggesting that the mid-term market sentiment for KLCI is still bearish bias. If the WinChart RSI managed to break above the 30% level, mid-term sentiment for KLCI would then turn from bearish to neutral. (Study B)

As shown in the C circle, %K line of the Stochastic retreated and nearly touch the 30% level. This is because the %K is very sensitive to even a slight volatility; thus producing noises during a side ways market. Therefore, it pays to include the %D line when reading the Stochastic signal. At the moment, %D line suggests that the short-term market sentiment for KLCI is still at neutral. (Study C)

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