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On Monday, the Composite Index ended higher, gaining 3.75 points to 928.66 points. As indicated by A, 10 days Bollinger band width contracted another 22%, suggesting that the KLCI is gearing up for a new direction. Mean while, support for the KLCI remains at 920 level while the resistance for the KLCI is still at the 931 level. (Study A)

Total market volume for the day stood at 641 million shares, a 2.7% lower than the previous total market volume. At the moment, total market volume is still below the 40 days VMA level, suggesting that the volume is insufficient if the KLCI was to break above the 931 level. In other words, we need volume higher than the 40 days VMA to confirm a break out, or else, the break out would be a false one. (Study B)

As indicated by C, the MACD histogram again suggested a round bottom signal. If the histogram was to rise, it would suggest an end to this technical correction, and market is likely to advance. Still, breaking above the 931 level is crucial in order for the KLCI to maintain in the up trend channel. (Study C)

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