Winchart Technical Analysis - Daily Market analysis
On Tuesday, the FBM2nd Board Index had a daily low at 5835.48 points, and it rebounded precisely again at L1, and closing 11.25 points lower to 5873.81 points. Therefore, the L1 is the dynamic support for the FBM2nd Board Index. (Study A). Meanwhile, the Bollinger Bands Width contracted another 8% on Tuesday, suggesting that the FBM2nd Board Index is still consolidating. Nevertheless, current market direction remains unclear. If the Bollinger Bands Width should expand with the FBM2nd Board Index above the Bollinger Middle Band, it would be a bullish signal for the FBM2nd Board Index.
As circled at B, the Stochastic also showing a short term neutral. Therefore, this also suggests that the current market direction is still unclear. The Stochastic must break above the 70% level in order to suggests a short term bullish signal.
As circled at C, the MACD signal remains unclear. This is due to the contraction of the Bollinger Bands Width. Because, generally, Secondary indicators signal are less reliable during the market sideways, and therefore, we have to wait until the Bollinger Bands Width expands, and other secondary indicators signal will be more accurate.
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