Composite Index Daily Technical Analysis, 19/05/2005 

On Thursday, KLCI precisely rebounded at the support of L2, and the T1 dynamic support. Therefore, L2 and T1 supports remained valid. As a result, we assume that the KLCI is range bound between L1 and L2. 10 days Bollinger Band opened slightly at 3%, which in our opinion, too small to be considered as any signals. (Refer to A) For the day, KLCI was up a fraction of 1.1 points at 887.47 points. 

As pointed in B, total market volume on Thursday was slightly up 1.5%, indicating that the overall market is still relatively quiet. 

As mentioned in our yesterday’s analysis, %K of Stochastic rebound a fraction. Currently Stochastic is located at the short-term bearish zone (between 10% - 30%). However, if KLCI were going sideways, will shall see Stochastic turning back to the short-term neutral zone shortly.

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