Composite Index Daily Technical Analysis, 21/06/2005

Composite Index ended mixed on Tuesday with a decline of 0.44 point. 10 days Bollinger Bands contracted 15%, which suggests that the KLCI is indeed consolidating. Mean while, Bollinger Middle Band is the critical support level. Nonetheless, 889.89 points of WinChart automatic Fibonacci Retracement remains a strong resistance level for KLCI. (Refer to A)

Total market volume on Tuesday gained of 8.8%, higher than the 40 VMA. In other words, the market participation is relatively active. (Refer to B). 

Despite KLCI technical correction, Stochastic remained above the 70% level. Therefore, the short-term market sentiment for KLCI remains positive. As long as Stochastic staying above the 70% level, there is still hope for a second round rally for KLCI. (Refer to C)

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