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On Wednesday, the Composite Index ended slightly lower, with an intra-day low at 936.96 points. As shown on the chart above, the Composite Index is still resisted by the T2 dynamic resistance of the up trend channel (Study A), while the immediate support is at 10 days Bollinger middle band dynamic support. (Study A1) Nevertheless, the Composite Index is still at a consolidation stage.

As shown by B, WinChart RSI's class A bearish divergence signal is still intact. Therefore, the Composite Index technical correction is likely to continue. Nevertheless, if the WinChart RSI could break above the descending B line, it shall signal an end to the correction, and if WinChart could remain above the 70% level, market outlook would still be bullish. (Study B)

As indicated by C curve, the MACD histogram continued to tick lower, suggested that the bullish signal is weakening thus, a technical correction for the Composite Index. This signal suggests that the correction shall continue until the histogram begins to rise again. Nevertheless, there is no bearish signal from the MACD, and therefore, the market sentiment would still be bullish bias at the moment. (Study C)

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