Composite Index Daily Technical Analysis, 27/06/2005

Composite Index ended lower on Monday with a loss of 6.85 points. 10 days Bollinger Bands contracted 7%, while the index rebounded at the 890.2 WinChart automatic Fibonacci Retracement support. Therefore, the immediate support for KLCI is at 890.2 points while the immediate resistance is at the Bollinger middle band. (Study A)

Total market volume for the day up a fraction with a 3.9% gain, which appeared to be right at the 40 days VMA level. While it is usually normal for volume to retreat slightly during the consolidation phase, it is crucial to have market volume higher than the 40 days VMA during rallies. (Study B)

MACD line continued to tick lower and getting closer to the trigger line. If the MACD line crossed below the trigger line, it will trigger a Sell signal. Nonetheless, MACD line is still situated above the zero level, as a result, overall long term market out look remains positive. (Study C).

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