Winchart Technical Analysis - Daily Market analysis
As indicated by A the FBM2nd Board Index Bollinger Bands Width contracted another 21% on Tuesday, suggesting that the market direction for the FBM2nd Board Index is still unclear. It is important to know that when the Bollinger Bands Width is getting very narrow, it usually implies that the consolidation is near its end. Nevertheless, we still need to wait until the Bollinger Bands Width expands, for it would indicate a new direction for the FBM2nd Board Index. Resistance for the FBM2nd Board Index is still at 5956 Fibonacci line, and the support is a 5536 Fibonacci line.
As circled at B, the Stochastic %K rebounded on Tuesday, without entering the short term bearish region. Therefore, the Stochastic is still showing a short term neutral signal, and the FBM2nd Board Index short term movement is expected to be at neutral.
As circled at C, the MACD histogram falls on Tuesday, suggests that the FBM2nd Board Index is still weakening. However, since the MACD is a secondary indicator, the significance of its signal will reduced when the Bollinger Bands Width contracts. Nevertheless, if the MACD histogram should starts rising and form a rounding bottom, it would suggests that the MACD bullish signal is picking up strength again.
Find this analysis useful? Why not share it with others? Click Here to send this to a friend
 1st Online Training In Malaysia |
 |
 |
 |
| View the Online Training | More Market Analysis | Find out more about WinChart | Upcoming Events |
Straits Index (M)
Sdn Bhd
No. 16, Jalan LP 1A / 5, Lestari Perdana,
43300 Seri Kembangan, Selangor
Hotline: (03) 8941 6828 (5
lines) Fax: (03) 8941 9828
Email: info@straitsindex.com
© Copyright 1997-2007 Straits Index (M) Sdn Bhd All
rights reserved