Composite Index closed lower on Friday, losing 1.61 points to 893.37 points. As shown on the chart above, the Composite Index rebounded precisely on the T1 dynamic support line. Since the break out of the downtrend channel last week, KLCI were resisted by the 900 psychological level. (Study A)

On the other hand, 10 days Bollinger band width contracted 4% suggesting that the direction for the KLCI is still unclear. In addition, KLCI might be forming a new down trend where the R1 acts as the new dynamic resistance level.  

WinChart RSI on Friday remain in the neutral region, giving no indication of the direction of KLCI. However, because the WinChart RSI is below the 50% level, there is a slight negative bias for the mid-term market sentiment. (Study B)

As indicated by the C curve, the MACD histogram showed a round top signal, suggesting that the bullish signal on the MACD has weaken. If the histogram continue moving lower, the KLCI is likely to retreat further until a round bottom signal is sighted. (Study C)

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