As indicated by A, the FBM2nd Board Index advanced 36.85 points on Friday, breaking above the Bollinger Middle Band to close at 3992.86 points. However, the FBM2nd Board Index is still resisted by the 4000 level, and therefore, the 4000 resistance level remains intact.

As shown on the chart above, the Bollinger Bands Width expanded slightly on Friday with the FBM2nd Board Index above the Bollinger Middle Band, therefore, if the Bollinger Bands Width should continue to expand with the FBM2nd Board Index above the Bollinger Middle Band, more upside room for the FBM2nd Board Index is expected.

As circled at B, the Stochastic returned to above 70% level, entering the short term bullish region again. This shows that the short term movement of the FBM2nd Board Index is picking up strength. If the Stochastic should remain above 70% level, the short term movement for the FBM2nd Board Index is likely to be bullish biased.

As circled at C, the MACD histogram is still rising after it has failed to form a rounding top. Therefore, the rising of the MACD histogram is still suggesting that the short term movement of the FBM2nd Board Index is still improving. Still, the priority of the analysis should be on the Bollinger Bands Width. If the Bollinger Bands Width should continue to expand, the signals of the secondary indicators are usually more reliable.

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