As indicated by A, the FBM2nd Board Index tested the Bollinger Middle Band dynamic resistance on Thursday, but failed to break above the Bollinger Middle Band, closing 4.06 points lower to 3952.09 points. Meanwhile, the Bollinger Bands Width is still contracting suggesting the FBM2nd Board Index is still consolidating.

Generally, the direction of the FBM2nd Board Index is unclear when the Bollinger Bands Width contracts. If the Bollinger Bands Width should expands with the FBM2nd Board Index remain below the Bollinger Middle Band, it would be another bearish biased signal for the FBM2nd Board Index. However, if he Bollinger Bands Width should expands with the FBM2nd Board Index above the Bollinger Middle Band, it would be a bullish biased signal for the FBM2nd Board Index. Nevertheless, resistance for the FBM2nd Board Index is still at 4000 psychological level while the support is still at 3872.24 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic failed to break above 70% level while still wander around the 50% level; this shows that the direction for the FBM2nd Board Index is still unclear as it is consolidating. If the Stochastic should break below 30% level again, it would be another short term bearish signal for the FBM2nd Board Index.

As mentioned on Wednesday's analysis, the MACD line stopped declining, and therefore, we are now monitoring the MACD histogram for any sign of a rounding bottom. However, as circled at C, the MACD histogram has not formed any rounding bottom, and therefore, there is no signs of the FBM2nd Board Index regaining its strength yet.

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