Composite Index ended firmly on Wednesday's trading with a gain of 7.23 points, closing the day at 924.01 points. As shown on the chart above, KLCI closed precisely at W1 line, which is also the dynamic resistance for KLCI in the ascending wedge. This shows that the W1 dynamic resistance is intact, while the dynamic support remains at W2.

As indicated in B, total market volume for the day was up 22.9%, stood at 5.446 million lots. Volume for the day was higher than the 40 days VMA level, suggesting that the market was active and market momentum is still healthy. However, watch out for the total market volume on the following trading days, for if we saw a decrease in trading volume with higher index points, it might suggests a temporary reversal. (Study B)

Eversince the rebound on Monday, %K of Stochastic remains above the 70% level, which is the short-term bullish zone. As long as Stochastic stays above this level, market sentiment in the short-term is still positive. (Study C)

Copyright 1997-2005 Straits Index (M) Sdn Bhd, All Rights Reserved