As indicated by A, the Bollinger Bands Width contracted 14% on Monday, suggesting that the FBM2nd Board Index is still consolidating while the market direction is still unclear. The contraction of the Bollinger Bands Width also imply that the FBM2nd Board Index is preparing for a new movement, and the direction of the new movement shall be revealed as the Bollinger Bands Width re-expands.

If the Bollinger Bands Width should expand with the FBM2nd Board Index above the Bollinger Middle Band, it would be a signal suggesting a bullish biased movement. If the Bollinger Bands Width should expands with the FBM2nd Board Index remain below the Bollinger Middle Band, it would be a bearish biased signal. Support for the FBM2nd Board Index is still at 3872.24 WinChart Automatic Fibonacci Retracement while the immediate resistance is at 4000 point.

As circled at B, the Stochastic rebounded slightly on Monday while near the 50% level. Since the Stochastic has not broken below the 30% level, the market movement for the short term is still at neutral, as the FBM2nd Board Index is consolidating. If the Stochastic should return to above 70% level, it would suggest an end to the consolidation and the FBM2nd Board Index is likely to resume the short term bullish signal.

As circled at C, the MACD histogram is still falling while the rounding top remains intact. As long as the MACD histogram is still falling, the weakening movement of the FBM2nd Board Index is expected to continue, until the MACD histogram should form a rounding bottom.

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