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On Monday, the Composite Index closed at the intra-day high at 928.48 points, ended the trading day higher by 2.39 points. As indicated by A, the 10 days Bollinger Bands width expanded 43% with the Composite Index situated above the middle band. Therefore, this is a bullish signal suggesting that there are more upside volatility for the Composite Index. As long as the Bollinger Band width continues to expand, the bullish shall continue. (Study A)

Support for the Composite Index is now at the 10 days Bollinger middle band as well as 920 Fibonacci Retracement, while the resistance is the 931 important level. In addition, the T3 ascending trend line is also the important dynamic support for KLCI.

As indicated by B, total market volume for the day stood at 923 million shares, a 18% higher than the previous total market volume. Volume on Monday also broke above the 40 days VMA level suggested that the market participation is now active, thus giving the market movement a good support. Provided that we see volume remain higher above the 40 days VMA, the bullish outlook shall continue. (Study B)

For the first time after, the WinChart RSI has broken a new high since 22nd of July 2005, suggesting that the Composite Index is gaining strength. Mean while, WinChart RSI on Monday has entered the mid-term bullish region, and provided that the WinChart RSI could maintain it's position above the 70% level, market sentiment for the mid-term would be bullish. (Study C)

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