On Friday, the Composite Index ended lower, losing 3.72 points to 892.13 points. As shown on the chart above, the KLCI remained resisted by the T1 dynamic resistance line, thus, the KLCI is still trending down. Support for KLCI is now at 883 Fibonacci retracement line as well as the T2 dynamic support. (Study A)

Mean while, 10 days Bollinger band opened 26% with the KLCI situated below the middle band. If the opening of the Bollinger band width persists, more down side risk is expected for the KLCI.

As indicated by B, total market volume on Friday retreated 7.7%. This is partly due to the shortening of trading days next week for the Christmas holiday. Nonetheless, if the total market volume could sustain the growing pace, a break out above the T1 is still possible or else, KLCI would remained in the down trend channel. (Study B)

MACD histogram continued moving lower suggesting that the bull is still getting weaker. At the moment, short-term market sentiment for KLCI remains bearish unless a round bottom of the histogram is sighted. (Study C)

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