For the week ended on the 30th of September 2005, the Composite Index gained a total of 5.65 points at 927.54 points, with the weekly low at 921.76 on Monday and a weekly high at 929.52 on Wednesday.

Basically, the KLCI has advanced on a gradual pace, with the continuous support at the 10 days Bollinger middle band dynamic support line. At this moment, the strongest support for KLCI falls on the 906 level while the 917.57 Fibonacci retracement line also serves as a mild support. On the other hand, KLCI is facing a hurdle at 931. 45 Fibonacci retracement, and the major hurdle is still at th 954 level.

For the week, the Bollinger bands signals has been rather unconvincing with no strong follow through after an attempt of the opening of the band width; thus, KLCI has not yet taken a strong direction. However, the since the KLCI has been supported by the middle band, immediate outlook for KLCI is still positive. (Study A)

Total market volume for the week stood at 22 million lots, while one the daily chart reading, volume for the entire week was rather pleasing the only Thursday's volume failed to reach above the 40 days VMA level. Therefore, market activities for the week was considered active. (Study B)

As indicated in C, the MACD line has been moving upward gradually. Although we see a somewhat round top from the histogram, the MACD line is indeed pointing upwards. As long as we see the MACD line moving upward, a round top signal from the histogram would suggests a temporary technical correction. Base on the MACD reading, KLCI is still in an advancing momentum. (Study C)

WinChart RSI failed to hold up above the 70% level on Wednesday, suggests that the market sentiment is not entirely bullish. At this moment, the WinChart RSI is situated slightly below the 70% level, which his the neutral; but since it is above the 50%, it has a bullish bias. (Study D).

On Wednesday, the %K of Stochastic fell below the 70% level giving a warning signal to which suggests that the short-term bullish sentiment might come to an end, however, %D remains above the 70%, giving no confirmation. Positively enough, the %K rose back up above the 70% on Friday. Provided we see both lines of the Stochastic situated above the 70%, market sentiment for the short-term is expected to be bullish. (Study E)

Although most indicators are positive, KLCI is not showing a clear direction at this moment. We maintain our opinion that the KLCI sentiment is still positive bias, and it is a good idea to keep track of the development of the Bollinger Bands for it has been staying in a narrow range for quite a long time.

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