Composite Index Daily Technical Analysis, 13/05/2005. 

The KLCI ended the week lower at 891.36 points, supported at 890.8 point of the WinChart Automatic Fibonacci Retracement. For the day, KLCI lost 2.04 points and closed below the 10 days Bollinger Middle Band. Any how, L2 remains the current support of KLCI together with the 890.8 Fibonacci line. As for the resistance, it is still at L1 around 907.5 points as well as the dynamic resistance of the 10 days Bollinger Middle Band 

10 days Bollinger Bands contracted another 16%, suggesting that the market volatility is getting lower. Therefore, the current movement of KLCI is still unclear, until the Bollinger Band Width expands. (Refer to A) 

On Friday, May 13, 2005, total market volume stood at 4,595,477 lots, and has breached above the 40 days VMA, indicating that the market was relatively active. This is a usually good sign for if KLCI were still supported above L2. Otherwise, if the L2 support were breached, market volume above 40 days VMA would represent that the selling pressure is strong. (Refer to B) 

Winchart RSI has broken down the 70% level, entered the neutral zone. This is interpreted as neutral because the KLCI is moving side-ways. We shall see another rally for KLCI if WinChart RSI were going to return above the 70% level. (Refer to C)

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