Composite Index ended lower on Wednesday, easing 1.43 points to 894.65 points. As shown on the chart above, the KLCI remained in the symmetrical pennant (triangle) with the T1 as the dynamic resistance and the T2 as the dynamic support. (Study A)

Mean while, the 10 days Bollinger band width contracted 40%, suggesting that the consolidation of KLCI continued. At the moment, direction for KLCI is still unclear. Nevertheless, if the KLCI were going to break out above the T1, a growth volume is imperative.

Total market volume on Tuesday stood at 2.76 million lots, merely breaching above the 40 days VMA level. This suggests that the overall market is actively participated. It is certainly an added ingredient if the KLCI were to break out of the down trend or the consolidation triangle if the total market volume would increase. (Study B)

The MACD histogram continue moving lower and as a result, the round top signal is still intact. This suggests that the KLCI is still consolidating. However, if the histogram moves higher in the coming trading days, it shall signal the end of this consolidation. (Study C)

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