Composite Index closed lower to 925.21 points, with a lost of 1.04 points. As indicated by A, KLCI closed slightly below the important support, which is the 10 days Bollinger middle band dynamic support. Therefore, immediate outlook for KLCI is now turning cautious.

Meanwhile, 10 days Bollinger band width contracted another 6% indicating that the volatility of the KLCI is very low, thus market consolidate. Nonetheless, support for KLCI falls on the 921 Fibonacci retracement, while the resistance for KLCI is found at 928.78 Fibonacci retracement.

As circled in B, %K of the Stochastic failed to hold up above the 70% level, and as a matter of fact, it has dropped below the 50% level on Friday closing. At this moment, Stochastic reading suggests that the short-term market sentiment is still neutral. (Study B)

As pointed in C, MACD line is pointing slightly lower, and getting very closed to the trigger line. However, due to the ambiguity of the KLCI direction, hence the contraction of the Bollinger band width, significants of any signal from secondaries indicators is reduced. (Study C)

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