(M) Sdn Bhd 

The Composite Index rebounded strongly on Wednesday, regaining 4.28 points to 897.13 points. Currently, resistance for the KLCI remains at the R1 downtrend dynamic resistance, as well as the 900 psychological level.

At the same time, the KLCI might be forming a trading range between T1 (which is very closed to the 901 Fibonacci level or the 900 resistance) and T2. This is because the direction for KLCI is still unclear with the Bollinger band width contracted 3%.

Despite unclear market sentiment, total market volume on Wednesday managed to stand above the 40 days VMA level at 410 million shares. Currently, the market volume is still an encouraging sign where by the market participation is active. (Study B)

As mentioned on yesterday's analysis, %D of the Stochastic remains in the neutral region with the %K rebounded strongly away from the bearish zone. At the moment, both lines of the Stochastic are situated in the neutral region suggesting that the short-term market sentiment is at neutral. (Study C)

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