On Thursday, the FBM2nd Board Index rebounded 19.52 points to close at 5787.93 points. Therefore, the Bollinger Bands Width begins to contract, suggests that the FBM2nd Board Index is likely to consolidate again. The contraction of the Bollinger Bands Width also suggests that the current direction is unclear, as the FBM2nd Board Index is gearing up for new direction. However, the new direction would only be visible when the Bollinger Bands Width re-expands. Nevertheless, the resistance for the FBM2nd Board Index is still at 5956 level.

As circled at B, the Stochastic did not break below the 30% level, and therefore, the current short term movement for the FBM2nd Board Index is still at neutral.

As circled at C, the MACD histogram ticked higher again, and the signal is still unclear. It is important to know that when a stock or an index is moving sideways, the significance of the secondary indicator signal will be reduced. Therefore, it is still advisable to monitor the Bollinger Bands as the Bollinger Bands Width contracts.

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