Composite Index Daily Technical Analysis 09/06/2005 

KLCI closed mixed, downed 0.04 points. As shown in the chart above, KLCI closed above the 878.22 of WinChart automatic Fibonacci Retracement. Therefore, 878.22 is still the immediate support level. Resistance for KLCI will be at R1 of 885 points.10 days Bollinger Bands opened 14%, giving some buying signal. (Refer to A).

As shown in B, total market volume on Thursday gained another 22.2%, standing high above the 40 days VMA. This shows that the market participation is very active.

As pointed in C circle, %K of Stochastic showed first sign of technical correction. Nevertheless, since %D is still above the 70%, short-term bullish zone, short-term market sentiment remains bullish.

To sum up, general market sentiment has turn positive. We expect KLCI to pull back slightly; provided it stays above the Bollinger Middle Band, more upside movement after the pull back is likely to happen.

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