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On Tuesday, the Composite Index rebounded slightly, gaining a modest 0.49 points to 925.67 points. As shown on the chart above, the upper hurdle for the KLCI remains at the 931 resistance level while the immediate support for the KLCI is at the 14 days Moving average dynamic support as well as the 920 Fibonacci level. (Study A)

Nevertheless, 10 days Bollinger band contracted another 12%, suggesting that the KLCI is still consolidating. Mean while, the up trend channel with T1 and T2 is still intact.

Total market volume on Tuesday stood at 665 million shares, a 23.7% dropped from yesterday's total market volume. In addition, this is also the first time where the total market volume drops below the 40 days VMA level ever since the rally started on the 28 of December, 2005. This suggests that the market participation has dropped, and if the volume remains below the 40 days VMA in the near future, the sustainability of the up trend would be doubtful. (Study B)

By looking at the MACD histogram, we see that the histogram continue to descend on Tuesday. This suggests that the consolidation is still not ended yet. In general, a round bottom signal from the histogram would suggests and end to the consolidation. (Study C)

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