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On Monday, the Composite Index ended mixed, closing 0.73 point higher to 927.36 points. As shown on the chart above, the Composite Index is still supported by the 10 days Bollinger middle band. Mean while, 10 days Bollinger Bands width continue to contract suggesting that the market direction is still unclear.

Nevertheless, the Composite Index is still forming an ascending triangle with T3 as the dynamic support while the previous 931 resistance is still serving as the resistance level. In short, the Composite Index must break out above this consolidation triangle in order to continue the uptrend.

Total market volume on Monday stood at 931 million shares, a 12% lower than the previous total market volume. Despite the decrease in volume, volume on Monday remained above the 40 days VMA level suggested that the market was still actively participated. Nevertheless, if the Composite Index were to break out above the resistance again, a higher volume would be the most important ingredient. (Study B)

In spite of the technical correction of the Composite Index after hitting the resistance, MACD does not show any bearish signal. However, the histogram was descending gradually suggested that the bullish signal was weakening. If the histogram could turn up again, that would signal an end to this technical correction, thus market outlook would likely to turn brighter. (Study C)

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