The Composite Index ended higher on Tuesday, gaining 2.38 points to 894.51 points. As shown on the chart above, the KLCI is still trending in the downtrend channel with the T1 remaining as the dynamic resistance. (Study A)

Mean while, the KLCI on Tuesday was also resisted by the 894.48 WinChart Automatic Fibonacci Retracement line. In addition, the 10 days Bollinger band width also contracted 6%, suggesting that the direction for KLCI is still unclear.

Total market volume on Tuesday stood at 256 Million shares, which failed to reach the 40 days VMA level. If the KLCI were going to break away from the downtrend channel, a volume higher than the 40 days VMA level is imperative. (Study B)

The MACD histogram continues moving lower on Tuesday, but however, the steepness of the descending histogram is gradually slowing down. Therefore, we might be able to see a round bottom signal in the coming days if the MACD line continues to move higher. (Study C)

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