On Thursday, the FBM2nd Board Index remained supported by the 5226.31 WinChart Automatic Fibonacci Retracement, rebounded 4.52 points. As indicated by A, if the FBM2nd Board Index should rebound from this level, it could form a double bottom, which is a sign of a technical rebound which could end the downtrend. Nonetheless, the FBM2nd Board Index has to break above the 14, 21, 31 EMA successfully in order to breakout from the downtrend risk, and the next resistance is at 5644 WinChart Automatic Fibonacci Retracement.

As circled at B, the WinChart RSI was almost unchanged, while staying around the 50% level; therefore, it is still showing a neutral signal. If the FBM2nd Board Index should rebound and form a double bottom, and the WinChart RSI should rise at the same time, it would be a Class-B Bullish Divergence signal, suggesting a chance of a reversal. However, the bullish divergence signal is best to confirm with an increase of the market volume, or else the significance of the signal is reduced.

As circled at C, the Stochastic is still below 30% level, and the short term bearish signal remains intact. If the Stochastic should break above the 30% level, it would be a signal suggesting a beginning of a technical rebound. If the Stochastic should break above the 70% level, it would be a short term bullish signal for the FBM2nd Board Index.

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