On Monday 29th of August 2005, Composite Index ended low at 911.85 points, losing 6.53 points or 0.7%. As displayed in the chart above, since the break below of the 50 days EMA line on last Friday, the 50 days EMA lines is serving as a dynamic resistance for KLCI. In addition, the 917.57 Fibonacci line is also the immediate resistance for KLCI while the 906 level is now the important support for KLCI. (Study A)

Total market volume for the day stood at 3.31 million lots while still far below the 40 days VMA level, which is around 4.5 million lots. This suggests that the current market is still considered quiet. (Study B)

As shown in the C circle, WinChart RSI is currently situated below the 30% level, which is also the mid-term bearish zone. As long as WinChart staying within in the bearish zone, market sentiment and out look for the mid-term would remain bearish. (Study C)

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