05/12/2005
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Composite Index rebounded mildly, gaining 0.34 points to 885.48 points. As shown on the chart above, KLCI rebound off from the T2 support level while still facing the hurdle at the T1 dynamic resistance.
In additional, Monday's rebound was partially caused by the 20 days Bollinger Band pull back effect. (Study A)
As circled by B, Stochastic remained in the short-term bearish zone, suggesting that the market sentiment for the short-term is likely to be bearish bias. (Study B)
As indicated at C, the WinChart RSI is showing a possible class A bullish divergence signal. This divergence signal suggest that the KLCI is due for a technical rebound. If the KLCI can hold up above the 883 level, this divergence signal would be valid. Nonetheless, at the moment, the WinChart RSI is situated in the neutral region. (Study C)
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