Composite Index Daily Technical Analysis, 10/06/2005 

On Friday, June 10, 2005, KLCI closed firmly with a gain of 10.62 points. 10 days Bollinger Bands opened 34%, thus giving more upside room for KLCI. However, KLCI hit the T1 resistance before noon as well as the 890.2 points of WinChart automatic Fibonacci Retracement. With T1 and T2, we assume that KLCI moving in a descending triangle. Therefore, we expect a technical correction for KLCI. (Refer to A) 

Total market volume on Friday, retreated 10%, showing a minor sign of bearish divergence in volume. Nonetheless, since volume is above the 40 days VMA, market participation is still active. (Refer to B) 

As indicated in C, Stochastic suggests a possible technical correction soon. However, as long as the stochastic remains above the 70% level, short-term market sentiment remains bullish.

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