Winchart Technical Analysis - Daily Market analysis
Since the FBM2nd Board Index has been consolidating in its sideways movement, it is a suitable time to apply the Bollinger Bands. Bollinger Bands is very effective to detect the end of the consolidation and a new movement. As indicated by A, the Bollinger Bands Width contracted another 24%, suggesting that the FBM2nd Board Index is still consolidating. Therefore, if the Bollinger Bands Width should expand with the FBM2nd Board Index staying above the Bollinger Middle Band, it would be a signal suggesting a bullish movement. However, if the Bollinger Bands Width should expand with the FBM2nd Board Index staying below the Bollinger Middle Band, it would be a bearish signal.
As circled at B, the Stochastic %D line falls below the 70% level marginally. Therefore, confirming the %K line signal, and suggesting an end to the short term bullish signal. At the moment, the Stochastic is showing a short term neutral signal.
As indicated by C, the MACD histogram is still showing a rounding top. This suggests that the the FBM2nd Board Index movement is still weakening. Unless the MACD histogram can tick up and form a rounding bottom, the weakening movement is expected to continue.
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