Winchart Technical Analysis - Daily Market analysis
On Wednesday, the FBM2nd Board Index had an intra-day low touching 5514.95 points, which marked another new low, before rebounding and closing at 5596.13 points. Although the FBM2nd Board Index managed to close above the 5536 support level, the new low actually suggests an end to the sideways consolidation, and a continuation of the downtrend. Nevertheless, the temporary support for the FBM2nd Board Index is still at 5536 level, and if the FBM2nd Board Index should closed below this level, it would confirm a new low, and there won't be any valid support until a rebound takes place again.
As circled at B, the WinChart RSI is still staying below the 30% level, suggesting that the mid term market sentiment for the FBM2nd Board Index is still weak. Therefore, provided that the WinChart RSI is still staying below the 30% level, the negative sentiment is expected to continue and the bearish biased view for the FBM2nd Board Index remains intact.
As circled at C, the Stochastic %K line managed to rebound and break above the 30% level, as the FBM2nd Board Index closed further away from its daily low. However, this signal is yet to be confirmed. If the Stochastic %D line should also break above the 30% level, it would confirm an end of the short term bearish signal, and the Stochastic would be showing a short term neutral signal.
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