Composite Index Daily Technical Analysis, 27/05/2005 

KLCI continued its’ technical rebound with a minor gain of 2.01 points, closing the Friday trading at 869.11 points. Presently, support for KLCI is at S1 which is also the 859.8 points of the WinChart Automatic Fibonacci Retracement line. Further up, we see resistances for KLCI fall on the 878.95 points WinChart Automatic Fibonacci Retracement, as well as R1 line. (Refer to A) 

10 days Bollinger Bands opened insignificantly at only 1%, showing that the volatility for KLCI has not changed. Nevertheless, KLCI remained below the middle band thus threatening a downside risk if Bollinger Band width re-opens again. Mean while, total market volume for Bursa Malaysia had shrank 10.7%, while still higher than the 40 days volume moving average. (Refer to B) 

For Technical indicator, we see %K of Stochastic continued to tilt higher and getting closer to the 30% level. If Stochastic successfully breached above the 30% level, with the confirmation of the %D, we shall see the short-term sentiment of KLCI turning neutral, thus steering away from the falling risk. (Refer to C circle)

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