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On Monday, the Composite Index managed to break above the T2 in the early session, however, ended lower the day below the T2 line. Therefore, T2 would remain as the dynamic resistance for Composite Index. At the moment, support for the Composite Index is at 10 days Bollinger middle band as well as the 14 EMA, and T3 would be the important dynamic support of the up trend channel. (Study A and A1)

As indicated by B, WinChart RSI shows a class A bearish divergence signal. This suggests that the KLCI is due for a technical correction. Nevertheless, since the WinChart RSI is still situated above the 70% level, market outlook at the moment is still on the bullish bias. (Study B)

As circled by C, both lines of the Stochastic are still situated above the 70% level, which is the short-term bullish region. Therefore, despite the resistance at T2 and the bearish divergence signal from WinChart RSI, market outlook would remain bullish bias if these lines could remain above the 70% level after the technical correction. (Study C)

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