As indicated by A, the FBM2nd Board Index is resisted by the 14, 21, 31 EMA dynamic resistance, and ended 52.43 point lower on Thursday. This shows that the FBM2nd Board Index is still trending down. Nevertheless, support for the FBM2nd Board Index is still at 5525.25 level and the resistance remains at 5644 WinChart Automatic Fibonacci Retracement line.

As circled at B, WinChart RSI is still staying around the 50% level, in the mid term neutral region. This suggests that the FBM2nd Board Index mid term sentiment is not bullish yet. Generally, the WinChart RSI has to break above the 70% level in order to show a mid term bullish signal.

As circled at C, the Stochastic %K line retreats after hitting the 100% level, but it managed to stay above the 70% level. Therefore, if the Stochastic %D line should break above the 70% level, it would confirm the Stochastic short term bullish signal, and the market movement for the short term is expected to improve further.

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