Composite Index continued it's technical rebound, closing 0.99 higher at 886.47 points. As shown on the chart above, KLCI remained in the downtrend channel, with the T2 as the dynamic support while the T1 as the dynamic resistance. (Study A)

Mean while, 10 days Bollinger band width only opened 1%, suggesting that the rate of expansion has decreased dramatically. If we see a contraction of the band width, it shall suggests that the KLCI is consolidating.

Total market volume on Tuesday has gained 15.8% to 2.94 million lots. This is a good sign for it represents that the market participation is gradually recovering. In additional, the total market volume on Tuesday was very closed to the 40 days VMA level. If the volume can break above the 40 days VMA level, it suggests that the volume market participation is relatively active. (Study B)

WinChart RSI's bullish divergence signal on Monday was valid, as a result, the KLCI technical rebound. Provided we see the WinChart RSI staying above the ascending line, sentiment for the KLCI is likely to improve gradually. Nonetheless, at the moment, WinChart RSI is situating in the neutral zone. (Study C)

Copyright 1997-2005 Straits Index (M) Sdn Bhd, All Rights Reserved