As indicated by A, the FBM2nd Board Index is ended 22.15 points lower to close at 5036.42 points, after hitting the dynamic resistance of the 14, 21, 31 EMA. Therefore, the downtrend remains intact, and the outlook for the FBM2nd Board Index is still bearish biased. Since the Bollinger Bands Width is still contracting, it suggests that the FBM2nd Board Index is likely to consolidate with the support remains at 4820.88 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic %D breaks above the 70% level by margin, therefore, the short term bullish signal is still not very clear. Generally, the Stochastic has to maintain above 70% level in order to sustain the short term bullish signal.

As circled at C, the MACD histogram is still rising, despite the FBM2nd Board Index ended lower. Therefore, this suggests that the market movement for the short term is still positive. However, readers are advised to monitor the MACD histogram, for if the histogram should start falling and form a rounding top, it would be a signal suggesting the FBM2nd Board Index is weakening.

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