The FBM2nd Board Index continued its sideways movement, and even ended 44.84 points higher on Friday. Therefore, we now switch to Bollinger Bands to monitor the FBM2nd Board Index movement. As indicated by A, the FBM2nd Board Index is now above the Bollinger Middle Band, and the Bollinger Middle Band will be serving as the dynamic support for the FBM2nd Board Index. Currently, the Bollinger Bands Width is still contracting, suggesting the FBM2nd Board Index is still consolidating. If the FBM2nd Board Index should remain above the Bollinger Middle Band when the Bollinger Bands Width re-expands, it would be a bullish signal suggesting more upside room for the FBM2nd Board Index. Support for the FBM2nd Board Index remains at 4018.69 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic is still above 90% level, which suggests that the current movement of the FBM2nd Board Index is indeed bullish, but still, the Stochastic is suggesting an over-heated condition for the FBM2nd Board Index, thus a risk of a technical correction remains in place. Nevertheless, should the Stochastic remain above 70% level, the market movement for the short term is still bullish biased.

As circled at C, the MACD histogram is still falling, and therefore, the rounding top signal remains intact, which suggests a weakening movement for the FBM2nd Board Index. However, both the Stochastic and MACD histogram are Secondary Indicators, and if there is any conflict of signals, the priority of the analysis should be based on the Primary Indicators, which is Bollinger Bands or the Moving Average.

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