As shown on the chart above, the FBM2nd Board Index continue its sideways movement, ended 29.12 points or 0.5% lower on Tuesday to close at 5325.80 points. Meanwhile, as indicated by A, the 14, 21, 31 EMA is still the dynamic resistance for the FBM2nd Board Index and therefore, the downtrend risk remains intact. Support for the FBM2nd Board Index is still seen at the 5255.25 level. If the FBM2nd Board Index should break below this level, it would mark another new low to continue its downtrend and further dampen the market sentiment.

As circled at B, the WinChart RSI could not break above the 30% level. Therefore, it is still showing a mid term bearish signal, suggesting a weaker market sentiment for the mid term.

As circled at C, the Stochastic %K line continue falling on Tuesday. If the Stochastic should return to below the 30% level, it would signal another short term bearish signal, and the market movement for the short term would be bearish biased.

Find this analysis useful? Why not share it with others? Click Here to send this to a friend

Straits Index (M) Sdn Bhd
No. 16, Jalan LP 1A / 5, Lestari Perdana,
43300 Seri Kembangan, Selangor
Hotline: (03) 8941 6828  (5 lines)   Fax: (03) 8941 9828    
Email: info@straitsindex.com
© Copyright 1997-2007 Straits Index (M) Sdn Bhd All rights reserved