As shown on the chart, the FBM2nd Board Index continue to rebound on Friday, closing at its daily high of 4288.93 points, up 34.43 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 would end the downtrend. However, if the FBM2nd Board Index should remain resisted by the dynamic resistance, the downtrend shall remain intact. Support for the FBM2nd Board Index is at 4018.69 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic %D line break above 30% level, therefore confirming the technical rebound signal. As long as the Stochastic is still rising, the technical rebound is expected to continue. If the Stochastic should break above 70% level, it would be the short term bullish signal for the FBM2nd Board Index.

As circled at C, the MACD histogram is still rising, and forming a rounding bottom. Therefore, a signal suggesting a technical rebound or even a chance to regain strength. If the MACD histogram should continue rising, the improvement of the FBM2nd Board Index is likely to continue, until the MACD histogram should start falling and form a rounding top.

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