Composite Index ended firmer on Monday, gaining 4.5 points to 906.24 points. As indicated by A, KLCI was precisely resisted by the 906 Fibonacci level, this is also the dynamic resistance of T3 line. If the KLCI fail to break out of the T3 line, we suspect the KLCI will be trending in the downtrend channel of T3 and T4.

Mean while, 10 days Bollinger bands continue to contract another 14%, suggesting that the direction for KLCI is unclear.

WinChart RSI continue to tick higher on Monday. At the moment, WinChart RSI is situated in the neutral zone; market sentiment is expected to be at neutral. (Study B)

As pointed out in C, %K of the Stochastic has breached above the 70% level, suggesting a short-term bullish sentiment for KLCI. However, %D line has just barely crosses above the 30%, giving no confirmation to %K's signal. Nonetheless, it pays to keep track of the development of this indicator. (Study C)

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