As shown on the chart above, the FBM2nd Board Index rebounded 26.77 points to close at 5223.76 points on Friday. The FBM2nd Board Index is now set to test the 5226 resistance level. Since the 5226 resistance is very closed to the 14, 21, 31 EMA dynamic resistance, therefore, if the FBM2nd Board Index should break above the 5226 level, it would also test the dynamic resistance. If the FBM2nd Board Index should break above the dynamic resistance, the FBM2nd Board Index would have a chance to break out from the 10 months downtrend. Nevertheless, support for the FBM2nd Board Index is at 5153 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic remains at the border line of 30% level, therefore, if the Stochastic should continue rising, it would break away from the short term bearish region. Generally, the Stochastic has to break and maintain above the 70% level in order to signal a short term bullish signal.

As circled at C, the WinChart RSI also rises as the FBM2nd Board Index rebounded. However, it is still below the 30% level. If the WinChart RSI should break above the 30% level, it would end the mid term bearish signal, and the market movement for the mid term would turn to neutral from bearish biased.

Although the FBM2nd Board Index is now getting closer to the dynamic resistance, break out from the dynamic resistance should be confirmed with significant increase of market volume, or else, the FBM2nd Board Index might tend to consolidate.

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