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On Friday, the Composite Index ended lower, losing 1.63 points to 926.47 points. As displayed on the chart above, the KLCI remained in the up trend channel, with the multiple moving averages line rising in convergence. Resistance for the KLCI remains at the 931 level while the support is at the 10 days Bollinger middle band dynamic support as well as the 920 WinChart automatic Fibonacci retracement level. (Study A)

As indicated by B, total market volume on Friday stood at 774 million shares, a 12.8% lower than yesterday's total market volume. While the retreat of volume during a consolidation is relatively healthy, market outlook would be cautious if the volume continues dropping. At the moment, total market volume is still above the 40 days VMA level, suggesting that the market is still active. (Study B)

As pointed by C, the MACD line touched the signal line, triggered a bearish signal for the KLCI. However, with the contraction of the Bollinger band, significance of this signal is reduced. Nonetheless, if the MACD line continues falling, market sentiment would turn to bearish. (Study C)

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