Although the Composite Index open lower at 909.38 points, it managed to close the trading day before the 48th Merdeka day with a 1.71 point gain, at 913.56 points. Nevertheless, KLCI is still facing the 917.57 Fibonacci resistance hurdle as well as the 50 days EMA dynamic resistance. On the other hand, support for the KLCI remains at 906.35 Fibonacci retracement line. (Study A)

As indicated in B, total market volume for the day retreated another 2.5%, standing at 3.23 million lots. Volume at this level is still far below the 40 days Volume Moving Average level thus suggesting that the market participation is relatively low. (Study B)

As shown in C circle, %K and %D of the Stochastic both remain in the short-term bearish zone. Therefore, the market sentiment for the short-term remains bearish.

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