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On Thursday, the Composite Index rebounded strongly, advanced 7.38 points to close at 920.91 points. As shown on the chart above, the KLCI opened near the 931 support level, and rebounded. As pointed by A, the KLCI is now resisted by the 10 days Bollinger middle band dynamic resistance. (Study A)

Support for the KLCI remained at 931 level, while the resistance for the KLCI is at 10 days Bollinger middle band, and the next hurdle for the KLCI would be at the 931 Fibonacci retracement line.

As pointed by B, total market volume stood at 569 million shares, a 29.5% higher than the previous total market volume. This shows that the technical rebound of KLCI had created some interests in the market, but still, the volume is still below the 40 days VMA level. Therefore, volume at this level is still insufficient to promote any rally of the KLCI. (Study B)

As indicated by C, the %K of Stochastic has broken above the 30% level, giving the first signal to suggest that the short-term bearish sentiment has ended. If the %D line could break above he 30% level as well, it shall confirm the %K signal. At the moment, %K suggests that the short-term market sentiment is at neutral. (Study C)

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