On Monday, the FBM2nd Board Index marked another new low with 5167.39 points of its daily low before closing at 5167.39 points, down 15.44 points. As indicated by A, the Bollinger Bands Width expanded another 37% with the FBM2nd Board Index remained below the Bollinger Middle Band, therefore, the downside risk for the FBM2nd Board Index remains intact. Since the FBM2nd Board Index is touching new low, there is no reliable support for the moment while the Bollinger Middle Band is still the dynamic resistance.

As circled at B, the WinChart RSI rose slightly on Monday but remain below the 30% level, which is the mid term bearish region. This suggests that the FBM2nd Board Index mid term sentiment is still bearish biased.

As circled at C, the MACD histogram continue to fall while showing a rounding top signal. The falling of the MACD histogram suggests a weakening of the MACD signal, thus the short term movement for the FBM2nd Board Index is likely to turn weak. The weakness of the MACD signal is expected to continue until the MACD histogram should form a rounding bottom.

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