Composite Index Daily Technical Analysis 06/07/2005

Composite Index ended firmly on Wednesday's trading at 902.69 points with a gain of 3.82 points. As shown on the Chart above, KLCI is facing a strong resistance at 906 points in which KLCI failed to breach above this level. Nonetheless, immediate resistance for KLCI falls on L1 at around 906, while the immediate support falls on the 10 days Bollinger Middle Band. (Study A)

Bollinger Bands opened 9% on Wednesday's trading. This has allocated some upside volatility potential for KLCI, for the KLCI is now situated above the middle band. Total market volume for the day stood at 4.3 million lots while still slightly below the 40 days VMA. (Study B)

%K of Stochastic has broken above the 70% and entered the short-term bullish zone, while the %D is still lagging at the neutral zone. If %D entered the short-term bullish zone, this will confirm the short-term market sentiment has turned bullish. (Study C)

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