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On Monday, the Composite Index closed mixed, with a long upper shadow line, gaining marginally 0.07 to 922.03 points. This long upper shadow symbolizes that there are still selling pressure in the market. Nevertheless, the support for the KLCI remained at 920 Fibonacci level while the resistance is still at 931 Fibonacci level. (Study A)

As shown on the chart above, T3 is still the dynamic support; and if the KLCI indeed supported by T3, an up trend channel might be forming with T1 as the dynamic resistance.

As indicated by B, total market volume on Monday ended lower with 586 million shares, a 6.3% lower than previous day's volume. Volume on Monday remained below the 40 days VMA level suggesting that the market participation was still relatively dull. (Study B)

As circled by C, both %K and %D lines of the Stochastic are situated in the neutral region. Therefore, at the moment, market sentiment for the mid-term would be at neutral. If the %K can break above the 70% level, that would be a first bullish signal. Confirmation to this bullish signal would come when when the %D line break above the 70% level. (Study C)

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