(M) Sdn Bhd 

Composite Index ended marginally higher on Thursday, gaining 1.38 points to 902.7. As indicated by A, the KLCI remained resisted by the 10 days Bollinger middle band dynamic resistance, while the next resistance of the KLCI would still be the 914 level. Mean while, support for the KLCI is still at the important 900 psychological level.

On the other hand, the KLCI is forming a possible uptrend channel with the T2 as the dynamic support and the T1 as the dynamic resistance. Nonetheless, 10 days Bollinger band width continues to contract 23%, suggesting that the direction of the KLCI is still unclear.

Total market volume on Thursday fall 22.3% to 465 million shares. The decrease of the total market volume suggests a decrease of market capital in-flow, but still, since the volume is above the 40 days VMA, the market is still considered relatively active. (Study B)

%K of the Stochastic merely dropped below the 30% level, issuing a first short-term bearish signal. %D is still lagging in the neutral region, giving no confirmation of the %K signal. If the %D dropped below the 30% level, market sentiment for the short-term is expected to be bearish bias. (Study C)

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