As shown on the chart above, the FBM2nd Board Index ended sideways to close at 4967.86 points, down 10.97 points. As indicated by A, the FBM2nd Board Index remains resisted by the falling dynamic resistance, which is the 14, 21, 31 EMA (Exponential Moving Average). In short, as long as the FBM2nd Board Index is still resisted by the dynamic resistance, the outlook for the FBM2nd Board Index is still bearish biased, with the support at 4820.88 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic is still falling suggesting that the short term bullish signal has ended. This is due to the sideways movement of the FBM2nd Board Index. Nevertheless, if the Stochastic should break below 30% level, it would be a short term bearish signal for the FBM2nd Board Index.

As circled at C, the MACD histogram is falling slightly, and therefore, the rounding top is still in sight, which suggests a weakening of the FBM2nd Board Index short term movement. Therefore, provided that the MACD histogram is still falling, the weakening of the FBM2nd Board Index short term movement is expected to continue, until the MACD histogram should tick up and 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