On Tuesday, the FBM2nd Board Index continued its sideways consolidation with a narrow trading range, closing marginally 0.73 points higher to 3940.95 points. Meanwhile, the Bollinger Bands Width also contracted 15%, confirming the consolidation signal for the FBM2nd Board Index. The contraction of the Bollinger Bands Width is still suggesting that the FBM2nd Board Index is preparing for a new movement, and the new movement shall be revealed once the Bollinger Bands Width re-expands, and the new direction shall be determined by the position of the FBM2nd Board Index above or below the Bollinger Middle Band. Since the FBM2nd Board Index is still touching new low, there is no reliable support level for the moment, while the Bollinger Middle Band (as indicated by A) is still serving as the dynamic resistance for the FBM2nd Board Index.

As circled at B, the Stochastic is still staying below 30% level, which is the short term bearish region. In short, 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 is still rising slowly, while the rounding bottom remains in-sight. The rising of the MACD histogram suggests that the FBM2nd Board Index is still consolidating, and even a chance for the FBM2nd Board Index to improve. However, since the MACD line is still below the zero level, the market movement for the mid to longer view is still on the weaker side.

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