On Wednesday, the FBM2nd Board Index marked a new low with 5436.22 points, before closing at 5517.77 points, down 78.36 point or 1.4%. Meanwhile, the 14, 21, 31 EMA is still serving as the dynamic resistance for the FBM2nd Board Index, and therefore, with the FBM2nd Board Index staying below the falling dynamic resistance, the bearish view remains intact. Since the FBM2nd Board Index is marking new low, there is no reliable support reference at the moment.

As circled at B, the Stochastic %K line retreated as the FBM2nd Board Index declined sharply. If the Stochastic should return to below the 30% level, the short term bearish signal shall continue.

As circled at C, the WinChart RSI remains below 30% level, and therefore, the market strength for the mid term is still weak. Nevertheless, priority of the analysis is still at the primary indicator, which is the 14, 21, 31 EMA.

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