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On Monday, the Composite Index closed mixed again; gaining a fraction of a point at 923.02 points. As shown on the chart above, the KLCI had an intra-day low at the Bollinger middle band and rebounded. Therefore, Bollinger middle band would continue to serve as the dynamic support for the KLCI together with the 920 Fibonacci Retracement line. Mean while, resistance for the KLCI is still at 931 Fibonacci Retracement. (Study A)

Total market volume on Monday stood at 798 million shares, a 10.3% lower than the previous trading volume. Volume on Monday was barely at the 40 days VMA level. Again, based on the chart interpretation, if the KLCI was supported by the 920 Fibonacci Retracement line, a high volume would imply a stronger support at 920. But however, if the KLCI broke below the support level with high volume, that would be a signal of panic selling. (Study B)

Although market direction is unclear at the moment, Stochastic is still showing a bullish signal with both lines situated above the 70% bullish region. As long as the %K line is moving above the 70% level, the short-term bullish sentiment would continue. (Study C)

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