Composite Index Daily Technical Analysis, 24/05/2005 

KLCI had a slight technical rebound on Tuesday, May 24, 2005. For the day, KLCI gained 1.17 points closed at 884.34 points. At the moment, support for KLCI falls at 875.58 points of the WinChart Automatic Fibonacci Retracement line, where as the resistance is the L2 line, and further up, the dynamic resistance of 10 days Bollinger Middle Band. (Refer to A) 

10 days Bollinger Band contracted 1%, showing that the direction for KLCI is currently still unclear. Although we see KLCI broke down from the L2, we still don’t have any confirmation yet. If KLCI can rebound and stay above the L2 line, we shall see KLCI moving sideways. 

Total market volume on Tuesday decreased 9.4%, staying below the 40 days Volume moving average. This is a sign of quite market participation. (Refer to B) 

As indicated in C, %K of Stochastic cut above the %D, which is the first signal of technical rebound. However, since Stochastic is still remaining below the 30% level, in the short-term bearish, the short-term market sentiment remains weak.

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