As indicated by A, the Bollinger Bands Width contracted another 32% on Monday, and therefore, suggesting the FBM2nd Board Index is still consolidating. In other words, the FBM2nd Board Index is currently preparing for a new movement and the new movement shall be revealed once the Bollinger Bands Width re-expands.

If the Bollinger Bands Width should expands with the FBM2nd Board Index above the Bollinger Middle Band, it would be a bullish biased signal. However, if the Bollinger Bands Width should expands with the FBM2nd Board Index below the Bollinger Middle Band, it would be a bearish biased signal. Nevertheless, support for the FBM2nd Board Index is still at 4018.69 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic started falling as the FBM2nd Board Index is over-heated. This could be a sign implying a beginning of a technical correction. If the Stochastic should break below 70% level, it would end the short term bullish signal, and begin its technical correction.

As indicated by C, the MACD histogram is still falling, suggesting the FBM2nd Board Index is indeed turning weaker. The weakening of the FBM2nd Board Index is expected to continue as long as the MACD histogram is still falling, until it has formed another 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