Composite Index technical rebounded 2.47 points closing at 896.80 points. As shown on the chart above, KLCI managed to close above the T3 support line. At this moment, immediate resistance for KLCI will be the 10 days Bollinger middle band as well as the T1 dynamic resistance line.

As indicated by A, 10 days Bollinger band width opened another 7%, suggesting that the downside risk for KLCI is still intact. However, the rate of the band width expansion has been gradually reduced. (Study A)

As mentioned on yesterday's analysis, the WinChart RSI bullish divergence signal was valid. In additional, the WinChart RSI has now breached above the 30% level suggesting that the mid-term market sentiment for KLCI is at neutral. (Study B)

As pointed by C, the momentum indicator is also showing a possible sign of a class A bullish divergence. If the this signal is valid, it shall imply that the KLCI has temporary found a lowest base and technical rebound would likely to continue. (Study C) Anyhow, the T3 support line is still the most important factor for KLCI.

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