Composite Index Daily Technical Analysis, 02/06/2005 

KLCI once again retested the S1 support line and closed with a rebound at 862.4 points. Therefore, S1 support line remains a very crucial support level for KLCI. 10 days Bollinger Band contracted 7%, suggesting that the KLCI is consolidating. Mean while, 10 days Bollinger Middle Band is currently the dynamic resistance line, as well as the R1 resistance line. (Refer to A) 

Total market volume increased 23.2%, higher than the 40 days VMA level. This as a sign of conflict interests where the selling pressure as well as the buying interests are almost at equal. (Refer to B) 

As indicated in C, MACD histogram continued showing sign of technical rebound. Therefore, KLCI is likely to move sideways. Nevertheless, MACD line remains below the zero level, thus showing that the overall market sentiment is still relatively weak.

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