Composite Index ended mixed on Wednesday, advanced marginally 0.36 points to 902.9 points. As shown on the chart above, KLCI remains in the down trend channel with the resistance at T1, while the T2 serves as the dynamic support.

Mean while, 10 days Bollinger band width contracted another 15%, suggesting that the KLCI is going through a consolidation, and market is expected to be sideways in the short term.

Due to the sideway movement of KLCI, WinChart RSI is now situated around the 50% region, giving no clear indication to the market sentiment. Market sentiment in the mid-term is likely to be neutral, until a clear break out above the 70% level or break below the 30% level. (Study B)

%D of Stochastic is going in line with the %K line and both lines are now located in the neutral region. Therefore, short-term market sentiment for KLCI is likely to be neutral with a slide positive bias. (Study C)

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