Composite Index Daily Technical Analysis, 31/05/2005 

On Tuesday, 10 days Bollinger Band width opened 11%, further allocated more downside risk for KLCI. For the day, KLCI gave up 9.23 points (-1.1%) closed at 860.73, supported by S1 support line as well as the WinChart Automatic Fibonacci Retracement line. If this level is violated, we shall see more downside movement. Conversely, if KLCI can manage to stay above at this level, there is hope for KLCI to go sideways and consolidate. 

Nevertheless, 10 days Bollinger middle band remains the important dynamic resistance; because in order for KLCI to regain its strength, a break out above the middle band is imperative. Further resistance shall be at WinChart Automatic Fibonacci Retracement at 878.95 as well as the R1 line. (Refer to A). 

For the day, total market volume stood at 4,419,717 lots, above the 40 days volume moving average level indicates a sign of some selling pressure. (Refer to B). 

WinChart RSI remained sprawling below the 30% level, mid-term bearish zone. Therefore, the mid-term sentiment for KLCI remains weak and bearish. (Refer to C)

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