On Friday, 5th of May, 2006, the Composite Index ended 7.22 points higher with a 6 years high at 962.38 points. As indicated by A, the 954 is now the immediate support for the Composite Index while the T1 is the assumed upper trend channel resistance. If the Composite Index were going to pull back after this break out, it should rebound at or above the 954 level, in order for the break out to be valid. Nevertheless, with the EMAs still rising, the up trend momentum of the Composite Index is still in place.

As pointed by B, total market volume stood at around 1.7 billion shares, a 46.4% higher from the previous' market volume. The growth of volume on Friday has given the break out a firm support, and provided the volume remain higher above the 40 days VMA level, the uptrend movement of the Composite Index is likely to continue. (Study B)

As circled by C, WinChart RSI has returned to above the 70% level, which is the bullish region. Therefore, as long as the WinChart RSI could stay at this region, the market sentiment for the Composite Index would be bullish. (Study C)

Straits Index (M) Sdn Bhd
No. 16, Jalan LP 1A / 5, Lestari Perdana,
43300 Seri Kembangan, Selangor
Hotline: (03) 8941 6828  (5 lines)   Fax: (03) 8941 9828    
Email: info@straitsindex.com
© Copyright 1997-2006 Straits Index (M) Sdn Bhd All rights reserved