Composite Index Daily Technical Analysis 29/06/2005

Composite Index ended the wednesday trading lower with a loss of 4.69 points. 10 days Bollinger Bands opened 10% while the KLCI situated below the middle band. Therefore, the immediate outlook for KLCI turned cautions. Nevertheless, resistance for KLCI is now at the middle band, while the support is still at 890.20 WinChart Automatic Fibonacci Retracement. (Study A)

Total market volume for the day decreased 6.6%, staying below the 40 days VMA (volume moving average). This is a sign of lack of participation where the overall market movement is rather inactive. (Study B)

MACD has trigger a “sell signal” with the MACD line crossed below the trigger line. Therefore, the immediate outlook for KLCI turned bearish. (Study C) However, %K of Stochastic has touched the 0% level, which will usually trigger a pullback or technical rebound.

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