(M) Sdn Bhd 

On Wednesday, the Composite Index ended lower, losing 4.92 points to 918.92 points. As indicated by A, the KLCI was supported around the 914 level, which is also the 10 days Bollinger middle band dynamic support level; while the resistance remains at the 903 level. (Study A)

As shown on the chart above, the multiple-moving averages are still raising in convergence; therefore, provided that the KLCI is above these lines, the up trend is still intact.

%K of the Stochastic has drop below the 70% level marginally, suggesting that the short-term bullishness might be coming to an end. However, the %D line remains in the short-term bullish region, giving no confirmation to the %K line. If the we saw the %K line returning above the 70% region while the %D remains there, market sentiment for the short-term would remain bullish. (Study B)

As indicated by C curve, MACD histogram showed a round top signal, suggesting a technical correction. Mean while, the MACD line is still above the trigger line in which the bull is still in control. Nonetheless, if the histogram continues to decline, it shall imply that the bull is getting weaker. (Study C)

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