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On Monday, the Composite Index ended lower, losing another 2.01 points to 914.92 points. As indicated by A, although the KLCI had an intra-day rebound, it was resisted by the 31 days EMA. Mean while, the KLCI had marginally broken below the 916 support level. Nevertheless, with the multiple EMA begin to fall, sentiment for the KLCI could turn bearish.

Despite the bearish sentiment of the KLCI, the KLCI has also breached below the 20 days Bollinger lower band, which suggested an over-sold condition. This suggests that there will be a pull-back or technical rebound soon.

As indicated by B, the Stochastic reading remains bearish bias. However, %K is still at the over-sold region, suggesting that a rebound is due to take place. Nevertheless, if both lines of the Stochastic remained below 30% level, market sentient for the short-term would continue to be bearish bias. (Study B)

MACD histogram continued to fall on Monday, showing that the bear won another battle. At the moment, there is no signal suggesting that the bear is getting weaker, and therefore, the MACD histogram suggests a short-term bearish market sentiment. (Study C)

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