KLCI Daily Analysis
25/05/2005		 Copyright (c) 1997-2005 SI Logo(M) Sdn Bhd 
 All Rights Reserved.

Composite Index Daily Technical Analysis, 25/05/2005 

KLCI, on Wednesday, confirmed the broke down of the L2 line and closed at 870.10 points, downed 14.24 points or 1.6%. As a result, L2 is now officially the resistance of the KLCI; where as, support of KLCI can be found at 859.81 points of the WinChart Automatic Fibonacci Retracement line. 

Bollinger Band had opened 29% indicating a bearish signal for KLCI; therefore, immediate outlook for KLCI turned more bearish. In addition, as indicated in B, total market volume for Bursa Malaysia was up 70.6% and was higher than the 40 days Volume Moving Average indicating a strong selling pressure. 

WinChart RSI has breached below the 50% level on Wednesday and was very close to entering the 30% level of the mid-term bearish zone. Needless to say, if RSI successfully entered the mid-term bearish zone, we shall expect more down side movement for KLCI. However, if RSI remains above 30% level, KLCI mid-term sentiment would be mildly bearish.

 

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