As indicated by A, the FBM2nd Board Index was precisely resisted by the 14-day EMA, which is the dynamic resistance for the FBM2nd Board Index, closing 10.51 points higher at 4397.35 points. If the FBM2nd Board Index should retreat after resisted at the dynamic resistance, it would end the current technical rebound, and the FBM2nd Board Index would have a risk of resuming its downtrend. Nevertheless, support for the FBM2nd Board Index is still at 4018.69 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic is still above 70% level, which is the short term bullish region. However, this signal is yet to be confirmed. Generally, the Stochastic %D has to break above 70% level to confirm the short term bullish signal.

As circled at C, the MACD histogram is still rising, suggesting the FBM2nd Board Index is still gaining strength. However, since the FBM2nd Board Index is now resisted by the important dynamic resistance, it pays to monitor the MACD histogram closely. If the MACD histogram should form a rounding top, it would be a signal suggesting the FBM2nd Board Index is weakening.

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