Composite Index Daily Technical Analysis.  29/04/05 

KLCI on Friday, 29/04/05, KLCI managed to breach through the resistance with a daily high at 880.56 points, but failed to close above the resistance. This is partially because of the lacking volume, which was only 3,062,274 lots, still below than the required 40 days Volume Moving Average (VMA). For the day, KLCI was up 5.11 at 878.96 (0.6%). (Refer to B) 

Remarkably, as pointed at (A), KLCI perfectly closed at the WinChart Automatic Fibonacci Retracement level, therefore, the current resistances are at Fibonacci 878.96, as well as 10 days Bollinger Band Upper Band. As for the supports, they are located at the 10 days Bollinger Band Middle Band and the 859.81 Fibonacci Retracement. 

10 days Bollinger Band opened 14% indicating that the volatility of the KLCI has slightly increased. For the positive note, KLCI is situated above the Bollinger Band Middle Band, and if Bollinger Band continues to open in the coming trading days, we should see more upside room for KLCI. However, any upside movement has to be supported by sufficient volume above the 40 days VMA, or else, the rally would be unconvinced. 

As shown in C, %K of Stochastic had breached above 70% level and touched the 90% line, signaling a short-term bullish sentiment, however, this is yet to be confirmed by the %D which is still lagging slightly below 70%. Mean while, RSI continued to move higher getting closer to the 70% mid-term Bullish zone. All these positive signals would be much stronger if volume were to be over above the 40 VMA. Until then, technically, KLCI is still at side-ways movement.

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