Composite Index Daily Technical Analysis 01/07/2005

Composite Index rebounded strongly on Friday's trading with a gain of 5.7 points, ended the week's trading at 894.02 points. As shown in the chart above, KLCI current support is at 888.29 WinChart Automatic Fibonacci Retracement line while the resistance is at the 10 days Bollinger Middle Band. (Study A)

Total market volume for the day was slight higher, an increased of 6.8%; however, still below the 40 days VMA level. Therefore, it suggests that the market participation is still considered low. (Study B)

As shown in C, %K of Stochastic indeed rebounded and had even breached above the 30% level. If the %K successfully break above this level, KLCI short-term outlook would turn to neutral. However, it is best to have the %D confirmation, since the %D is still lagging below the 30% level. (Study C)

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