KLCI DAILY ANALYSIS 28/04/05 

On Thursday, KLCI opened at 872.76 points, advanced to the daily high at 877.84 points where it meet the 10 days Bollinger Band Upper Band, and retreated to close at 873.83 points, up 1.4 point. 

At the moment, KLCI’s resistance is located at the WinChart Automatic Fibonacci Retracement at 878.96 points, and 10 days Bollinger Band Upper Band, which is also at around 878.96 points. As for the supports, it is the 10 days Bollinger Band Middle Band at around 782.6 points and further down at 859.81 points of the WinChart Automatic Fibonacci Retracement. For the day, Volume traded as slightly increased of a 3.5%, but still below the 40 days VMA. 

10 days Bollinger Band further contracted another 14%. Readers are advised to take note that the narrower and longer the Bollinger Band width contracts, the wider and stronger when it opens. Therefore, it pays to study Bollinger Band’s bandwidth precisely for the next few trading days. 

As for secondary indicators, RSI continued to move up further closer to the 70% level. But currently, it is still situated in the neutral zone, indicating KLCI is currently moving side-ways. As mentioned on yesterday’s daily analysis, DMI bullish signal is yet to be confirmed by ADX, thus showing a weak bullish signal.

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