As shown on the chart, the FBMACE continues to rebound, closing 36.61 points or 0.9% higher. However, it is still staying below the falling 14, 21, 31 EMA, dynamic resistance, and therefore, the rebound is still considered as a technical rebound, not a break out away from the downtrend.

Meanwhile, the Bollinger Bands Width only expanded 1%, and if compared to the previous expansion rate, it seems like the Bollinger Bands is about to contract. If the Bollinger Bands Width should contract, the FBMACE would consolidate. Supports for the FBMACE are still at 3950 and 3810 WinChart Automatic Fibonacci Retracement, while the resistance remains at 14, 21, 31 EMA.

As circled at B, the Stochastic breaks above 30% level, breaking away from the short term bearish region. This is a signal suggesting the FBMACE is having a technical rebound. If the Stochastic should break above 70% level, it would be a short term bullish signal for the FBMACE.

As circled at C, the MACD histogram did not form a Rounding Top, but instead might be forming a Rounding Bottom. If the MACD histogram should form a Rounding Bottom, it would be a signal suggesting that the FBMACE is gaining strength.

Despite some improvement of signals from MACD histogram and the Stochastic, the FBMACE is still below the Bollinger Middle Band as well as the 14, 21, 31 EMA dynamic resistance. Therefore, the downtrend is still intact, until a valid break out above the above dynamic resistance.

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