As shown on the chart above, the FBMACE continued its downtrend, ended 23.89 points or 0.6% lower. The FBMACE had its intra-day low closed to the 4031 WinChart Automatic Fibonacci Retracement, and it managed to rebound near the 4031 WinChart Automatic Fibonacci Retracement. This shows that the 4031 WinChart Automatic Fibonacci Retracement is still the support level for the FBMACE while the resistance is at the 14, 21, 31 EMA dynamic resistance.

As indicated by A, the 14, 21, 31 EMA is still falling while serving as the dynamic resistance for the FBMACE. This shows that the FBMACE is still on the weakening trend and therefore, provided that the 14, 21, 31 EMA dynamic resistance is still in place, the outlook for the FBMACE is still negative bias.

As circled at B, the Stochastic rebounded slightly on Wednesday, but failed to break above the 30% level. This shows that the short term movement of the FBMACE is still on the bearish biased movement. Unless the Stochastic could break above 30% level, the short term bearish movement is likely to sustain.

As circled at C, the MACD line breaks below the zero level, entering the negative territory. This suggests that the medium to longer term movement of the FBMACE is turning weaker. If the MACD line should stay below the zero line, the bearish movement is expected to continue. Meanwhile, no Rounding Bottom is sighted at the MACD histogram yet, and therefore, there is no signal suggesting that the FBMACE is gaining strength.

After breaking below the 14, 21, 31 EMA, the FBMACE trend continue to weaken, and also, the Bollinger Bands Width expanded 26% on Wednesday, with the FBMACE below the Bollinger Middle Band. Therefore, should the Bollinger Bands Width expands further with the FBMACE below the Bollinger Middle Band, the bearish movement shall continue.

Find this analysis useful? Why not share it with others? Click Here to send this to a friend

Straits Index (M) Sdn Bhd
No. 16, Jalan LP 1A / 5, Lestari Perdana,
43300 Seri Kembangan, Selangor
Hotline: (03) 8941 6828  (5 lines)   Fax: (03) 8941 9828    
Email: info@straitsindex.com
© Copyright 1997-2009 Straits Index (M) Sdn Bhd All rights reserved