As shown on the chart above, the FBM2nd Board Index rebounded 5.72 points as the pullback effect takes place. However, as indicated by A, the FBM2nd Board Index remains below the Bollinger Middle Band, therefore, the immediate outlook for the FBM2nd Board Index is still bearish biased. If the Bollinger Bands Width should begin to contract, it would be a signal suggesting a consolidation for the FBM2nd Board Index. Nevertheless, support for the FBM2nd Board Index is at 4000 psychological level while the Bollinger Middle Band is still the dynamic resistance.

As circled at B, the Stochastic rebounded slightly, but remains below 30% level, therefore, the short term bearish signal remains intact. Technically speaking, the Stochastic has to break above the 30% level in order for the FBM2nd Board Index to break away from the short term bearish region.

As circled C, the MACD histogram still has not formed a rounding bottom yet, and therefore, this suggests that the FBM2nd Board Index is still on the weakening trend. If the MACD histogram should tick up and form a rounding bottom, it would be a signal suggesting a technical rebound signal or even a chance for the FBM2nd Board Index to regain some losing ground.

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