KLCI Daily Analysis
11/05/2005		 Copyright (c) 1997-2005 SI Logo(M) Sdn Bhd 
 All Rights Reserved.

Composite Index Daily Technical Analysis, 11/05/2005 

As mentioned consecutively on our previous daily analysis that the target of the pull-back effect shall falls around at the 10 days Bollinger Band Middle band, KLCI on Tuesday undeniably had a daily low touching exactly at the 10 days Bollinger Band middle band and rebounded. For the day, KLCI lost 4.14 points (-0.5%). (Refer to A) 

Currently, 10 days Bollinger Band Middle Band serves as an important dynamic supports, and also T2 support at 885 points. On the other hand, the resistance will be at L1 at 907.5 points. 10 days Bollinger Band width contracted 6%, indicating that KLCI is still consolidating. 

Volume on Tuesday increased 34.9%, staying above the 40 days VMA. This is a sign of conflict interests where the number of optimistic traders and the number of pessimistic traders are almost at equal. Nonetheless, if KLCI were supported by the 10 days Bollinger Band Middle Band coupled with volume trading above the 40 days VMA, KLCI will have more upwards potential. (Refer to B) 

As for secondary technical indicator, MACD histogram continued showing that KLCI is consolidating. In addition, WinChart RSI remains above 70% level of mid-term bullish zone, showing that the mid-term sentiment of KLCI remains bright. (Refer to C)

 

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