Winchart Technical Analysis - Daily Market analysis
As circled at A, the FBM2nd Board Index is now away and above the 20-day Bollinger Upper Band, which suggests that the current movement is indeed bullish. However, based on the characteristic of the Bollinger Bands, if the FBM2nd Board Index should stay above the 20-day Bollinger Upper Band, it is an over-heated signal, and a pull-back is likely to take place as a technical correction in the near future. Nevertheless, if the FBM2nd Board Index should remains supported by the dynamic support after the possible technical correction, the outlook for the FBM2nd Board Index shall remains bullish biased. You can choose to apply the 10-day Bollinger Middle Band or the 14, 21, 31 EMA as the dynamic support.
As circled at B, the Stochastic remains above the 90% level, which is the short term over-bought region. Therefore, the Stochastic is still suggesting an over-heated signal for the FBM2nd Board Index. If the Stochastic should break below the 90% level, it would be a signal suggesting a technical correction.
As circled at C, the MACD histogram remains rising on Wednesday, and therefore, there is no visible rounding top signal. If the MACD histogram should start ticking lower and form a rounding top, it would be a short term weakening signal for the FBM2nd Board Index.
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