Winchart Technical Analysis - Daily Market analysis
On Wednesday, the Bollinger Bands Width expanded 48%, but the FBM2nd Board Index is staying below the Bollinger Middle Band. Therefore, the Bollinger Bands is now showing a bearish biased signal for the FBM2nd Board Index. If the Bollinger Bands Width should continue expanding with the FBM2nd Board Index staying below the Bollinger Middle Band, the bearish movement is expected to continue.
However, as indicated by A, the FBM2nd Board Index managed to rebound and closed at the L1 dynamic support of the Ascending Triangle. We have to understand that chart pattern analysis is still the most important aspect of Technical Analysis. Therefore, in this case, the signal of the Ascending Triangle would be more important than the Bollinger Bands. If the FBM2nd Board Index should rebound from L1, the FBM2nd Board Index is still not forming a downtrend yet. As for upside signal, the FBM2nd Board Index must break above the L2 or 5956 Fibonacci resistance.
As circled at B, the Stochastic falls on Wednesday as the FBM2nd Board Index closed lower. If the Stochastic should break below the 30% level, it would be a short term bearish signal for the FBM2nd Board Index.
As circled at C, the MACD line begins to fall. If the Bollinger Bands Width should continue showing a bearish signal, the falling of the MACD line would confirm the bearish signal.
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