Composite Index ended the week marginally higher closing at 921.99 points, advanced 2.34 points. As indicated in A, KLCI breached above the 920 resistance, with the Bollinger band width opening 4%. As a result, immediate support for KLCI is at 920 level while the next important support falls on the 10 days Bollinger middle band dynamic support. (Study A)

At this moment, KLCI facing the 931.45 Fibonacci resistance, while the biggest hurdle for KLCI is still at this year's high at 953.88 points.

As shown in B, total market volume for the day was 30.4% lower than yesterday's total volume, standing at 4.07 million lots. Volume at this level is slightly below the 40 days VMA level, and it would certainly better if we have the volume trading above the 40 days VMA level. (Study B).

As pointed in C, MACD line continued moving gradually higher, indicating that the KLCI is still having a positive direction. From the histogram reading, we do not see any round top signal yet, therefore, there is more upside room for KLCI provided we see the Bollinger band width continue to expand. (Study C)

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