For the week ended on the 23rd of September 2005, the Composite Index closed at 921.89 points, declined 0.1 point with a weekly high at 923.95 points on Thursday and a weekly low at 91.03 points on Monday.

Main Chart:
As shown on the chart above, KLCI has been supported by the 10 days Bollinger middle band dynamic support. However, for the entire week, KLCI was trading at a very narrow range of a 4.92 point. Therefore, from the reading of the daily chart, no visible chart patterns can be found except a narrow trading range.

Nevertheless, immediate support for KLCI falls on the 10 day Bollinger middle band, and the next support level would be the 917.57 Fibonacci retracement level, major support for KLCI is still the 906 Fibonacci retracement. On the other hand, 931.45 Fibonacci would be the KLCI's first hurdle.

Bollinger Bands:
Since breached above the 20 days Bollinger middle band on last Thursday, the KLCI managed to stay firmly above this level for it was previously the resistance for KLCI. As for the 10 days Bollinger bands, the band width was rather deceiving on Thursday with an 8% opening; however, because of the lack of follow through bullishness, the band width contracted again on Friday.

Nevertheless, since the KLCI is now situated above the middle band of 10 and 20 days Bollinger bands, immediate outlook for the market is still positive. (Study A)

Volume:
Total market volume for the week stood at 21.7 million lots, a 2.5% decreased from last week's total market volume. Overall volume level for the week was slightly positive with most of the daily volume standing above the 40 days VMA level. Therefore, the market for the week was considered actively participated. Of course, a volume higher than the 40 days VMA level for the coming trading days is definitely an added support to promote the market. (Study B)

MACD:
A round top signal is seen on the MACD histogram which suggests that the bull is taking a rest (Study C1). However, since the MACD line is still situated above the trigger line, there is no bearish signal for KLCI. Mean while, the MACD line is now touching the zero level, and if it go above this level, it would suggests that the market sentiment for the longer term is turning brighter. But still, as a note to our members and readers, most importantly is the slope and the direction of the MACD line. (Study C2)

WinChart RSI:
WinChart RSI broke above the 70% level entering the mid-term bullish zone. If the WinChart RSI stays above this level, market sentiment remain bullish thus KLCI is likely to advance. (Study D)

Stochastic:
Since entered the short-term bullish zone last week, the Stochastic is now still remains in the bullish zone suggesting that the market sentiment for the short-term is still positive. (Study E)

In the Nut Shell:
At this time, there is no negative signal for KLCI. With most indicators on the positive side, we maintain our positive view for the market as well. All we need is a confirmation of a firmer Bollinger band signal as well as the continuation of active market participation.

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