As circled at A, the FBM2nd Board Index breached below the 20-day Bollinger Lower Band on Monday, suggesting an over-sold condition for the FBM2nd Board Index. Therefore, it is likely to trigger a Pull-Back effect, which is a type of technical rebound. Usually, the first target for a pull-back effect is at the Bollinger Middle Band or the 14, 21, 31 EMA dynamic resistance. Currently, support for the FBM2nd Board Index is at 4500 WinChart Automatic Fibonacci Retracement while the resistance remains at the 14, 21, 31 EMA.

As circled at B, the Stochastic remain below 30% level, which is the short term bearish region. This shows that the market movement for the short term is still bearish biased. If the Stochastic should break above 30% level, it would be a signal suggesting a beginning of a short term technical rebound.

As circled at C, the MACD histogram has not formed a rounding bottom, and therefore, suggesting the FBM2nd Board Index is still turning weak. Since there is a chance for a pull-back, readers can also monitor the MACD histogram for a formation of a rounding bottom. If the MACD histogram should form a rounding bottom, it would be a signal suggesting a technical rebound for the FBM2nd Board Index.

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