Composite Index ended lower on Friday losing 1.16 points at 921.89 points. Once again, after so many days, the KLCI is still supported by the 10 days Bollinger middle band dynamic support. Unfortunately, the Bollinger band width contracted 3%, suggesting that the volatility of KLCI is still low. (Study A)

As shown in B, total market volume for day stood at 4.08 million lots, barely touching the 40 days VMA level. Nevertheless, we hope to see volume staying above the 40 days VMA in the coming days or else it is quite unlikely for the KLCI to advance. (Study B)

As pointed in C, the MACD histogram has shown a round top signal suggesting that the KLCI is consolidating. However, as indicated in c1, if the MACD line continues to move higher, it shall suggests that the longer term market sentiment for KLCI has turn positive. Nonetheless, we wee to watch out for any round bottom signal from the histogram, for it would signal and end to this consolidation. (Study C)

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