On Friday, the FBM2nd Board Index rebounded strongly, up 73.24 points to close at its daily high of 4988.87 points. As indicated by A, the FBM2nd Board Index is set to test the 14, 21, 31 EMA dynamic resistance. If the FBM2nd Board Index should break above the dynamic resistance it could end this downtrend. However, breaking above the downtrend is not going to be easy for it has to confirm with the increase of the market volume. Therefore, the best confirmation of the break out would be the total market volume staying above the 40-day VMA level. Nevertheless, the Bollinger Bands Width also started to contract, suggesting that the FBM2nd Board Index is now consolidating. Support for the FBM2nd Board Index is at 4820.88 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic breaks above 30%, suggesting a beginning of a technical rebound signal. If the Stochastic should also break above 70% level, it would be a short term bullish signal for the FBM2nd Board Index.

As circled at C, the MACD histogram ended higher on Friday, and therefore, it appears that the MACD histogram might be forming a rounding bottom again. Nevertheless, if the MACD histogram should continue rising, it means that the market movement for the short term is improving. However, it is important to point out that the MACD line is still below zero level, therefore, the FBM2nd Board Index trend for the mid to longer term is still weak.

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