Winchart Technical Analysis - Daily Market analysis
As indicated by A, the Bollinger Bands Width of the FBM2nd Board Index expanded another 21%, with the FBM2nd Board Index staying above the Bollinger Middle Band. Therefore, the expansion of the Bollinger Bands Width suggests that the Bollinger Bands bullish is still intact. If the Bollinger Bands width should begins to contract, it would a signal suggesting that the FBM2nd Board Index is consolidating.
As circled at B, both the Stochastic %D and %K lines are above the 90% level, which is the short term over-bought region. This shows that the recent movement of the FBM2nd Board Index has been bullish, but however, has gone slightly over-heated. Therefore, if the Stochastic should fall below the 90% level, it would a signal suggesting a beginning of the short term technical correction. Nevertheless, if the Stochastic should remains above the 70% level after the possible short term technical correction, the market movement for the short term shall remains bullish biased.
As circled at C, the MACD histogram remains rising on Monday, and therefore, it has not formed a rounding top signal yet. If the MACD histogram should form a rounding top, it would be a signal suggesting that the FBM2nd Board Index short term movement is weakening.
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