Composite Index Daily Technical Analysis, 01/06/05 

Supported by the crucial S1 line as well as the WinChart Automatic Fibonacci Retracement at 859.8 points, KLCI managed to close at 861.96 points, up 1.23 points. Nevertheless, KLCI is still below the 10 days Bollinger Middle Band which is currently the dynamic resistance. Further resistances can be found at 878.95 points of the WinChart Automatic Fibonacci Retracement as well as the R1 line. (Refer to A). 

Total market volume on Wednesday was retreated 11.8%, staying above the 40 days VMA level. Generally, when total market volume is above the 40 days VMA level, it indicates that the market participation is relatively active. (Refer to B). 

As indicated in C, MACD histogram once again is showing sign of “round bottom”. If the MACD histogram continues to tick higher, it will confirm the consolidation of KLCI above the important 860 level. (Refer to C)

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