Composite Index Daily Technical Analysis.04/07/2005

KLCI on Monday closed higher with a gain of 4.67 points. As shown in the chart, KLCI current resistance remain at the 906 level while the immediate support is at 895.24 WinChart Automatic Fibonacci Retracement. (Study A)

Total market volume for the day was lower at only 2.97 million lots, still far below the 40 days VMA. Therefore, with such low volume, it is highly doubtful if the KLCI were to have sufficient support to go higher. (Study B)

WinChart RSI is still situated slightly above the 50% level, which is the mid-term neutral zone; therefore, immediate outlook for KLCI is at neutral with a slight positive bias. As long as RSI stays above the 50% level, we shall expect another rally for KLCI after the consolidation. (Study C)

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