Composite Index ended higher, gaining 2.19 points to 898.30 points. The chart above shows that the KLCI break out from the down trend resistance line (T1), but however, this break out was not confirmed by the volume. Nonetheless, the KLCI is now resisted by the 899.73 or 900 Fibonacci retracement level. (Study A)

Mean while, 10 days Bollinger band width contracted another 7%, suggesting that the market direction is indeed unclear.

Market volume for Friday stood at 2.306 million lots, which is a 3.2% decreased from Thursday's total market volume. Volume at this level is still far away from the important 40days VMA, which suggests that the market participation is still low; as a result, it failed to give a confirmation to the break-out of the down trend channel. (Study B)

On the other hand, %K of the Stochastic has now entered the short-term bullish zone marginally. Provided we see the %K line remains above the 70% level, market sentiment for the short-term should be bullish bias. If the see the %D breaks above the 70% level, it shall confirmed the %K signal. (Study C)

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