On Tuesday, 10th of May, 2006, the Composite Index again ended mixed, losing 0.26 points to 966.62 points. As pointed by A, the pull-back took place as the Composite Index had an intra-day low at 961.69 points. Nevertheless, the Composite Index is consolidating, and the target for the pull-back effect would be the 10 days Bollinger middle band dynamic support.

In other words, if the Composite Index could rebound above the middle band, the upward movement is likely to continue. (Study A) Support for the KLCI is now at the 10 days Bollinger middle band while the immediate resistance remained at 970.5 points.

Despite the pull-back or the consolidation, WinChart RSI is still situated above the 70% bullish region. Therefore, provided the WinChart RSI could maintain its position at this region, the market sentiment would remain bullish. (Study B)

As circled by C, the MACD histogram is still on the rise. If a round top signal from the histogram is sighted, the KLCI consolidation would continue. Nevertheless, the MACD did not trigger any bearish signal at the moment. (Study C)

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