Composite Index Daily Technical Analysis, 06/06/2005 

Composite Index continued its technical rebound on Monday, June 06, 2005. For the day, KLCI gained 6.09 pts closing above the 10 days Bollinger Middle Band. 10 days Bollinger Band contracted 17% showing that the KLCI is consolidating. Current support level remained at the S1 or 860 pts, while the resistance is now the 878.22 WinChart Automatic Fibonacci Retracement, as well as the R1 line. (Refer to A) 

Indicated in B, total market volume for the day retreated 14.3% but still standing above the 40 days VMA; thus showing market activity is relatively active. Nevertheless, if KLCI were going to make an upside move, total market volume needs to be above the 40 days VMA.

WinChart RSI has steered away from the mid-term bearish zone, and now entered the neutral zone. But since it is still below the 50% level, we would interpret it as a neutral sentiment with a slight bearish bias. (Refer to C)

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