The Composite Index, on Wednesday, ended mixed with a mild gain of 0.53 points to 898.8 points. As displayed on the chart above, the KLCI was once again resisted by the 901.59 WinChart Automatic Fibonacci retracement line. On the other hand, the KLCI failed to break above the 900 psychological resistance level again. (Study A)

With both the 10 days and 20 days Bollinger band width remained unchanged on Wednesday, direction for KLCI is really unclear. Nonetheless, support for KLCI is now at the 10 days Bollinger middle band dynamic support.

Total market volume for the day stood at 2.75 million lots, a 1.9% increased from yesterday' total market volume. As indicated by B circle, the total market volume is now very closed to touching the 40 days VMA level. If the volume can break above the 40 days VMA level it generally suggests that the market is relatively active. (Study B)

Finally, both the MACD line and the histogram are both advancing gradually. At the moment, the bullish signal is still in good condition, but if we see the histogram moving lower, (round top), it shall imply that the bullish signal is getting weaker. (Study C)

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