KLCI Daily Analysis
07/06/2005		 Copyright (c) 1997-2005 SI Logo(M) Sdn Bhd 
 All Rights Reserved.

Composite Index Daily Technical Analysis, 07/06/2005 

KLCI ended firmly on Tuesday with a gain of 4.95 points. 10 days Bollinger Bands contracted 11%, still giving no signal for KLCI next direction. Nevertheless, KLCI stayed above the important 860 S1 level, while approaching to the R1 resistance as well as the 878.22 WinChart automatic Fibonacci Retracement line. Therefore, selling pressure is likely to step in and interrupt the upward movement temporary. (Refer to A). 

Indicated in B, although total market volume has once again above the 40 days VMA, it has been reduced drastically, if compared to the previous two trading days. This shows that the participation of the market activities has decreased. 

MACD histogram continued to tick higher, thus KLCI technical rebound continued. The technical rebound shall end when MACD histogram shows new sign of “round top”. Nonetheless, the MACD line is still situated below the zero line, thus showing that the long term market sentiment remained weak. (Refer to C)

 

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