As circled at A, the FBM2nd Board Index is now below the 20-day Bollinger Lower Band, which suggested a temporary over-sold condition. Therefore, it is likely to see a pullback effect, which is a form of technical rebound, in the near future. Nevertheless, since the FBM2nd Board Index is still below the Bollinger Middle Band, therefore, the outlook for the FBM2nd Board Index is still bearish biased, with the support at 4000 points, psychological level.

As circled at B, the Stochastic is still falling, breaking below 10% by margin on Thursday. This suggests that the short term movement of the FBM2nd Board Index is indeed bearish. Based on the Stochastic reading, if the Stochastic is below 10% level, it suggests an over-sold signal, and therefore, there might be a technical rebound in the near future. However, if the Stochastic should remain below 30% level, the short term bearish signal remains intact.

As indicated by C, the MACD is still falling while no rounding bottom is sighted yet. Therefore, this suggests that the FBM2nd Board Index is still on its weakening trend. In short, unless the MACD histogram should form a rounding bottom, the short term movement for the FBM2nd Board Index is still on the negative side.

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