Composite Index Daily Technical Analysis, 03/06/2005 

KLCI technical rebound continued on Friday, June 03, 2005. For the day, KLCI closed at 865.88 points, up 3.48 points. Current support remained at S1 at around 860 points, and resistances at the 10 days Bollinger Middle Band dynamic resistance as well as the R1 resistance line. (Refer to A) 

10 days Bollinger Band contracted another 7%, signaling a consolidation phase for KLCI. Total market volume for the day has gone up 34.7%, higher than the 40 days VMA. From a Technical Analysis point of view, if trading volume is strong during a technical correction, it suggests that KLCI has temporary found a strong support level. (Refer to B). 

As indicated in C, MACD histogram continued showing signal of technical rebound. Therefore, technical rebound for KLCI is likely to continue until the histogram shows sign of “round-top”.

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