Composite Index ended higher on Thursday, gaining 4.44 points to 896.11 points. As displayed on the chart above, the KLCI retested the T1 down trend channel resistance line, closing precisely on T1.

At the moment, T1 remained the important resistance for KLCI, while the support for KLCI falls on the 883 Fibonacci retracement line. (Study A) If the KLCI can break above the T1 line, it should end the down trend channel. However, the break out must confirmed with stronger volume. In the event of a pull-back should happen, it should not fall back into the channel for it would then be a false break-out.

As indicated by B, WinChart RSI breaks the 50% level marginally, suggesting that the mid-term market sentiment is at neutral with a slight upside bias. (Study B)

%K of the Stochastic broke above the 50% level, which is also the neutral zone with a positive bias. Mean while, the %D line remained at 30% level. If the %D can break above the 30% level, it shall confirm the %K signal that the short-term bearish sentiment has ended. (Study C)

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