For the week ended on the 11th of November 2005, KLCI losing a total of 15.57 points, closing below the 900 psychological level at 898.35 points.

Main Chart:
As shown on the Chart above, KLCI breached below the T2 support line as well as the 900 psychological support level. Therefore, T2 as well as the 900 level will be the immediate resistance for KLCI. Mean while, immediate support for KLCI falls on the 894 Fibonacci retracement line. (Study A)

Bollinger Bands:
10 days Bollinger band width expanded 21% after the 16% opening on the Thursday. Mean while, KLCI is situated below the middle band which suggests a bearish bias outlook for KLCI.

Volume:
Total market volume for the week stood at 13.52 million lots. On the daily chart, total market volume for the entire week stood below the 40 days VMA level, suggesting a very low market participation.(Study B)

MACD:
In line with the KLCI direction, the MACD line continue pointing lower. MACD triggered the buy signal in the early part of the week with the contraction of the Bollinger band width. Therefore, the significant of the signal was reduced. (Study C)

WinChart RSI:
Ever since the WinChart RSI entered the mid-term bearish zone on the 20th of October, the WinChart RSI has been staying below the 30% level. As a result, mid-term market sentiment for KLCI will remains bearish. (Study D)

Stochastic:
%D of the Stochastic entered the short-term bearish zone on Friday, confirming the %K signal on Thursday. As long as we see both lines of the Stochastic staying below the 30% level, short-term market sentiment will remains bearish. (Study E)

In the Nut Shell:
KLCI broke below the 900 points psychological level, and it is crucial for KLCI to return above the 900 level in the short-term; or else, the KLCI will confirm a break down of a descending triangle and market outlook is expected to be bearish. With indicators showing bearish signal, outlook for KLCI is likely to remain bearish.

Copyright 1997-2005 Straits Index (M) Sdn. Bhd.