Winchart Technical Analysis - Daily Market analysis
As indicated by A, the Bollinger Bands Width expanded another 35% on Tuesday, suggesting that the upside volatility of the FBM2nd Board Index is still increasing, thus a continuation of the bullish signal. Therefore, the FBM2nd Board Index is likely to test the next resistance at 5956 WinChart Automatic Fibonacci Retracement line. On the other hand, support for the FBM2nd Board Index is found at the Bollinger Middle Band, or the 14, 21, 31 EMA dynamic support.
As circled at B, the Stochastic is still staying above the 70% level, suggesting that the short term movement for the FBM2nd Board Index is bullish biased. However, the Stochastic %D line has breached above the 90% level, suggesting that the FBM2nd Board Index is starting to over heat. Therefore, readers are advised to monitor the Stochastic. If the Stochastic should fall below the 90% level, it would mark a beginning of a short term technical correction. Nevertheless, if the Stochastic should remain above the 70% level, the market movement for the short term is still bullish biased.
As indicated by C, the MACD histogram is still rising, suggesting that the MACD bullish signal is still gaining strength. In short, the FBM2nd Board Index is still gaining strength, until the MACD histogram should form a rounding top.
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