The FBMACE index ended sharply lower on Monday as the regional markets ended mostly lower. As indicated by A, the FBMACE closed slightly below the Bollinger Middle Band. Resistance for the FBMACE remains at 4398 WinChart Automatic Fibonacci Retracement while the support is still at 4031 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width stopped contracting, this suggests that the Bollinger Bands Width is about to expand thus implying that the consolidation of the FBMACE is about to end. If the Bollinger Bands Width should re-expands with the FBMACE below the Bollinger Middle Band, the outlook for the FBMACE would turn bearish biased.

As circled at B, the Stochastic fall below 70% and 50% level, and this signal might be a little over sensitive. Nevertheless, if the Stochastic should continue to fall and break below 30% level, it would suggest that the short term movement of the FBMACE is turning bearish.

As circled at C, the MACD histogram failed to form a Rounding Bottom, and instead ended lower. This shows that the FBMACE had failed to regain its strength. If the MACD histogram should continue falling, the short term movement of the FBMACE is expected to be weakening, until the MACD histogram should rebound and form a Rounding Bottom.

Despite the strong rebound last week, with the FBMACE returning to above the Bollinger Middle Band, the Bollinger Bands Width did not expand, suggesting that the FBMACE consolidation was still intact while still preparing for its new movement. The re-expansion of the Bollinger Bands Width would be critical for the FBMACE for it signals the beginning of its new movement. If the FBMACE should regain its strength and resume its uptrend, it has to return to above the Bollinger Middle Band, or else, if the Bollinger Bands Width should expands with the FBMACE below the Bollinger Middle Band, the outlook would turn bearish biased.

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