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On Thursday, the Composite Index continued it's technical correction. At the closed, the Composite Index ended lower, losing 5.64 points to 936.24 points. As indicated by A, the Composite Index was precisely supported by the 10 days Bollinger middle band dynamic support line. If the KLCI could rebound at the Bollinger middle band, outlook for the KLCI would still be at neutral to bullish bias. (Study A)

Nevertheless, as shown on the chart above, 931 Fibonacci Retracement is the support for the Composite Index while the T3 also serves as an important support. On the other hand, resistance for the KLCI is still at T2 dynamic resistance.

As indicated by B, the bearish divergence signal of the WinChart RSI is still intact. The bearish divergence signal suggests that the correction of the KLCI shall continue, unless WinChart RSI could break above the descending line, which would cancel the divergence signal. (Study B)

As pointed by C, MACD histogram continued to descend, suggested that the Composite Index is still having a technical correction. The correction is expected to continue until the histogram starts to rise. If the MACD histogram could form a round bottom signal, it shall suggests an end to the technical correction. (Study C)

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