As indicated by A, the FBM2nd Board Index is testing the 5226 resistance as well as the 14, 21, 31 EMA dynamic resistance, closing 3.32 points higher to 5222.38 points. Currently, the FBM2nd Board Index is still resisted by the dynamic resistance, and therefore, it has not broke out from its downtrend. It is important to point out that if the FBM2nd Board Index should break above the dynamic resistance, it should be confirmed with the significant increase of market volume, or the breakout would rather be unreliable. Nevertheless, support for the FBM2nd Board Index is still at 5153.15 WinChart Automatic Fibonacci Retracement.

As circled at B, the WinChart RSI was not rising despite the FBM2nd Board Index ended higher, therefore, it is still showing a mid term neutral signal, while staying below the 50% level. If the WinChart RSI should break above the 50% level, it would be a sign of improvement for the mid term market strength.

As circled at C, the Stochastic remains marginally above the 30% level, and therefore, the market movement for the short term is still weak. However, it pays to monitor the Stochastic closely for the FBM2nd Board Index is still consolidating, and if the Stochastic should break above the 50% level, it would be a signal suggesting an improving short term market movement. Generally, the Stochastic has to stay above the 70% level in order to sustain the short term bullish signal.

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