Composite Index Daily Technical Analysis. 05/07/2005

KLCI closed mixed on Tuesday's trading, with a mild gain of 0.18 points at 898.87 points. Immediate support for KLCI is at the Bollinger Middle Band as well as the 895.24 WinChart Automatic Fibonacci Retracement. As for the resistance, it is still at the 906 level. (Study A)

Total market volume for the day was 16% higher than yesterday's, but still far below the 40 days VMA level. From a technical point of view, volume at this level is absolutely insufficient to support any rally for KLCI. (Study B)

WinChart RSI turned up slightly above the 50% level. Currently, WinChart RSI is situated in the neutral zone with a slight positive bias. Again, if KLCI were going to go sideways, we shall see RSI floating slightly above and below the 50 % level, thus giving no trading signals. (Study C)

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