As indicated by A, the Bollinger Bands Width expanded 32%, with the FBMACE below the Bollinger Middle Band. Therefore, the FBMACE ended 71.57 points lower on Monday, and ended its consolidation. Since the FBMACE has broken below the 4031 WinChart Automatic Fibonacci Retracement, supports for the FBMACE are now at 3950 and 3810 WinChart Automatic Fibonacci Retracement, while the resistance is at the Bollinger Middle Band as well as the 14, 21, 31 EMA.

With the FBMACE staying below the falling 14, 21, 31 EMA, it is now forming a downtrend. If the Bollinger Bands Width should continue to expand with the FBMACE below t he Bollinger Middle Band, the outlook shall remains bearish biased, until the FBMACE could successfully break above the Bollinger Middle Band or the 14, 21, 31 EMA.

As circled at B, the Stochastic breaks below 30% level, entering the short term bearish region. This suggests that the short term outlook for the FBMACE is bearish biased.

As indicated by C, the MACD histogram started falling, and might be forming a Rounding Top. If the MACD histogram should form a Rounding Top, it means that the FBMACE is losing strength, and the weakening movement of the FBMACE is expected to continue, until the MACD histogram should form a Rounding Bottom.

The FBMACE has been staying below the falling 14, 21, 31 EMA for a considerable period of time, and it was consolidating with bearish biased while waiting for the confirmation of the Bollinger Bands signal. Now that the Bollinger Bands Width has re-expanded, it has confirmed the bearish movement of the FBMACE, and therefore, the 14, 21 31 EMA shall continue serving as the dynamic resistance for the FBMACE.

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