As indicated by A, the FBMACE is still resisted by the 14, 21, 31 EMA dynamic resistance on Wednesday, losing 44.55 points or 1.1%, to close at 4078 points. Therefore, the 14, 21, 31 EMA dynamic resistance remains intact, and the support for the FBMACE is still at 4031 WinChart Automatic Fibonacci Retracement.

With the FBMACE resisted by the dynamic resistance, the immediate outlook is bearish biased. Fortunately, the Bollinger Bands Width has not expanded. If the Bollinger Bands Width should re-expand with the FBMACE remain below the dynamic resistance, it would resume its downtrend.

As circled at B, the Stochastic retreated and broke below 30% level, entering the short term bearish region. This suggests that the short term movement of the FBMACE is now weakening, and provided the Stochastic is still below 30%, the short term bearish movement is expected to continue.

As circled at C, the MACD histogram stopped rising, and might be forming a Rounding Top. If the MACD histogram should form a Rounding Top it would be a signal suggesting an end to the technical rebound, and the FBMACE is expected to lose its strength. Meanwhile, the MACD line is still below the zero line, suggesting that the mid to long term is still on the weaker side.

Despite the recent technical rebound, the FBMACE failed to break above the dynamic resistance, suggesting that the short term downtrend is still intact. Nevertheless, with the Bollinger Bands Width has not expanded, thus has not confirmed that the FBMACE is resuming its downtrend.

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