As shown on the chart above, the FBM2nd Board Index retested the 4000 psychological support level, closing slightly below the 4000 points at 3990.60 points. Therefore, it is too closed to call for a break down, and the 4000 point support shall remain intact. However, as indicated by A, the Bollinger Middle Band is still falling, as it continues to serve as the dynamic resistance for the FBM2nd Board Index. In short, as long as the FBM2nd Board Index is resisted by the Bollinger Middle Band, the immediate outlook for the FBM2nd Board Index is still bearish biased. Meanwhile, if the Bollinger Bands Width should begins to contract, it would be a signal suggesting a consolidation for the FBM2nd Board Index.

As circled at B, the Stochastic is still falling while staying below the 10% level. This suggests that the FBM2nd Board Index short term movement is indeed bearish, but is now over-sold. Therefore, the FBM2nd Board Index is likely to have a technical rebound in the near future. However, as long as the Stochastic is still below 30% level, the market movement for the short term is still bearish biased.

As circled at C, the MACD histogram still has not formed a rounding bottom. Therefore, there is no sign of a technical rebound for the FBM2nd Board Index yet. In short, as long as the MACD histogram is still falling, the weakening movement of the FBM2nd Board Index is expected to continue.

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