On Wednesday, the Composite Index closed higher, gaining 1.04 points to 895.55 points. As shown on the chart above, the KLCI is still resisted by the T1 dynamic resistance line as well as the 10 days Bollinger middle band. At the mean time, the 10 days Bollinger band width contracted 2%, suggesting that the direction for KLCI is still unclear. (Study A)

Despite the mixed signal on the Bollinger band, total market volume on Wednesday has gained 21.1%, standing at 310 million shares. In addition, the total market volume was able to stand above the 40 days VMA level suggesting that the market is relatively active. (Study B)

The MACD histogram might be showing a round bottom signal, and if the round bottom is formed, short-term market sentiment would be positive. Most importantly, the slope of the MACD should not be turning downwards. (Study C)

Copyright 1997-2005 Straits Index (M) Sdn Bhd, All Rights Reserved