Composite Index Daily Technical Analysis, 09/05/05 

KLCI closed mixed on Monday, May 09, 2005. This is expected because of the pull-back effect of Bollinger Band. For most part of the day, KLCI remained down and had a daily low at 896.51 point. With last-minute push-up on KLCI related stocks, KLCI was up a fraction, 0.07 point.               

Currently, KLCI Resistance remained at L1 at 907.5 points, while the support is located at L2 at 855.5 points. In addition, 10 days Bollinger Band Middle Band also serves as a dynamic support. 

Volume for the day decreased 7.5%, stayed below the 40 days VMA. This is a normal reaction for KLCI is currently at a consolidation phase. Nevertheless, if KLCI were going to have a rally, trading volume has to be above the 40 days VMA. 

As pointed in C, MACD histogram shows a sign of “round-top” indicating a short-term correction. The correction is still valid until we see a “round-bottom” of the MACD histogram.

Copyright 1997-2005 Straits Index (M) Sdn Bhd, All Rights Reserved