Composite Index Daily Technical Analysis, 11/07/2005

Composite Index once again breached above the L1 resistance level at 906.5 and closed the Monday trading at 909.32 points. As shown in the chart, KLCI is now resisted by the 909.58 WinChart automatic Fibonacci retracement line. Immediate support for KLCI is at the L1 or 906.5 level. Further support can be found at the 10 days Bollinger Middle Band dynamic support. (Study A)

Total market volume for the day was 3.89 million lots, which is still lower than the 40 days VMA level. Therefore, once again, the break out of the L1 was not supported by such relatively low volume. Unless market volume picks up immediately, or else the sustainability of the rally is highly skeptical. (Study B)

Stochastic is still situated at the short-term bullish zone (above 70% level) and therefore, the short-term market outlook is still bullish. As long as Stochastic stays above the 70% level, we shall see more upside room for KLC. (Study C)

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