Composite Index Daily Technical Analysis, 20/05/2005 

KLCI broke down the L2 support. However, it is yet to be confirmed for Stochastic has shown the first sign of possible technical rebound. Nevertheless, 10 days Bollinger Band opened 3%, which in our opinion is too small to consider for any signals. For the day, KLCI gave up 4.3 points, closing at 883.17 points. (Refer to A) 

At the moment, KLCI support is located at 878.02 points of WinChart Automatic Fibonacci Retracement line, while L1 and 898.39 WinChart Automatic Fibonacci Retracement line remain the resistances. 

Total market volume on Friday dropped 14%; staying below the 40 days volume moving average. This indicates that the current market participation is relatively quiet. (Refer to B) 

WinChart RSI remained in the neutral zone. But since it is above the 50% level, we generally interpret it as neutral with an upside bias. Anyhow, if KLCI were going sideways, we shall expect RSI to be wandering around the 50% level. (Refer to C circle).

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