Composite Index Daily Technical Analysis, 26/02/2005 

On Thursday, KLCI had a daily of 859.8 points that touched the support of S1 line and rebounded strongly before closing at 867.1 points. For the day, KLCI gave up 3 points. Currently the support for KLCI falls at 859.8 points of the WinChart Automatic Fibonacci Retracement line. On the other hand, R1 line at 885.5 points serves as the resistance. In addition, 10 days Bollinger Middle band also serves as a dynamic resistance for KLCI. (Refer to A) 

As indicated in B, to market volume for the day retreated 5.5%, but still manage to stay higher than the 40 days Volume Moving Average. This suggests that the current trading of the market as a whole was relatively active. 

Technical indicator wise, we had %K of Stochastic cutting above the %D, signaling a technical rebound. Together with the support at S1 line, KLCI indeed rebounded. Nevertheless, since Stochastic remained in the short-term bearish zone, short-term market sentiment remains bearish until Stochastic successfully breached above the 30% level. (Refer to C)

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