As shown on the chart above, the FBM2nd Board Index continued its sideways movement on Tuesday closing 18.66 points lower to 3974.20 points. As indicated by A, the FBM2nd Board Index tested the 4000 resistance again; however, it failed to break above the 4000 level, and therefore, the 4000 resistance is still intact. On the positive side, the FBM2nd Board Index managed to rebound from the Bollinger Middle Band, which is serving as the dynamic support. Therefore, if the Bollinger Bands Width should expand with the FBM2nd Board Index above the Bollinger Middle Band, the FBM2nd Board Index is likely to break above the 4000 level and more upside room for the FBM2nd Board Index is expected. Nevertheless, next support for the FBM2nd Board Index is at 3872.24 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic failed to remain above 70% level, and therefore, the short term movement for the FBM2nd Board Index is still at neutral. Generally, in order to signal a short term bullish movement, the Stochastic has to maintain above 70% level.

As circled at C, the MACD histogram is still rising slowly. However, since the FBM2nd Board Index is still moving sideways, significance of the MACD histogram signal is reduced. Nonetheless, the rising of the MACD histogram is still a positive signal. If the MACD histogram should continue rising with the Bollinger Bands Width also expanding, it would be a stronger signal suggesting a positive movement for the FBM2nd Board Index.

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