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On Friday, the Composite Index ended higher, gaining 2.65 points to close the week at 943.71 points. As indicated by A, the Composite Index is now resisted by the T2, which is the dynamic resistance for the up trend channel. Support remain at 931 level as well as the multiple exponential moving average. In addition, the 10 days Bollinger middle band is also serving as the dynamic support for the Composite Index. (Study A1)

With the KLCI being resisted by the T2 line, the chance of technical correction is higher. However, provided that the KLCI could remain supported by the above mentioned supports, outlook for the KLCI would still be on the positive side.

As pointed out by B, total market volume for the day stood at 1.5 billion shares, slightly more than the previous day's volume. Nevertheless, volume remained higher above the 40 days VMA line, suggested that the market was well-participated thus giving a strong support to the up trend channel. Provided the volume could remain above the 40 days VMA level, market outlook in general would be on the bright side. (Study B)

Due to the recent bullish market movement, both %K as well as %D line of Stochastic have entered the short-term over-bought region (above 90% level). This suggests that the market was indeed bullish; however, the current market situation is over-heated. Therefore, the KLCI is likely to have a technical correction in the short-term. Nevertheless, if the Stochastic could remain above the 70% level after the correction, market sentiment for the short-term would still be bullish. (Study C)

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