KLCI DAILY ANALYSIS 25/04/05 

On Monday, 25/04/05, KLCI pulled back from the break-out on last Friday, and stopped on T1, which is the current support level. This kind of pullback is very normal for most break-outs, and if price stays above the T1, the break-out is considered valid, or else it will be a false break-out. (Refer to A) 

KLCI opened at 877.29, and slipped to the low at 871.39 and closed the day at 871.98, downed 5.8 points (-0.7%). The current resistance level is at the WinChart automatic Fibonacci Retracement at 878.96, and the 31 Exponential Moving Average, while the support is located at the T1, 10 days Bollinger Band Middle Band, and WinChart automatic Fibonacci Retracement at 859.81. 

10 days Bollinger contracted 15%, indicating that KLCI is at a consolidation phase thus representing that the volatility is low. For the day, volume retreated 25.6% and still below the 40 days VMA. (Refer to B) 

As pointed in (C), RSI, on Monday, break down below 50% again. This is a normal reaction for KLCI is moving side-ways. Readers are advised to take note that although the %K of Stochastic broke above 70% on last Friday, it was not yet confirmed by %D, which was only located at the 50%. Therefore, for Monday, Stochastic, %K dropped below 70% again entering the neutral zone.

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