On Monday, 15th of May 2006, the Composite Index ended lower, losing 1.43 points to 964.62 points. As indicated by A, the Composite Index had an intra-day low at 958.2 and rebounded at the 10 days Bollinger middle band dynamic support. Therefore, as long as the Composite Index could maintain its position above the Bollinger middle band, which is the target of the pull-back effect that took place on Last Monday, 9/05/2006. (Study A)

At the moment, support remained at the Bollinger middle band dynamic support while the resistance is still at 970.5 Fibonacci Retracement.

Total market volume on Monday stood at around 1.55 billion shares, a 3.2% lower than the previous volume. With the KLCI consolidating, a lower volume is generally healthier, and therefore, if the KLCI failed to hold up above the support with higher volume, it would further dampen the market sentiment. (Study B)

As shown by the C curve, the MACD histogram continue to decline, suggested that the bull was losing strength, but however, has not triggered any bearish signal at the close. Nevertheless, the continue falling of the MACD histogram signals the weakness of the current short-term market sentiment. (Study C)

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