As indicated by A, the FBMACE re-tested the 14, 21, 31 EMA again on Friday, but still remain resisted by the 14, 21, 31 EMA. This suggests that the FBMACE has not broken away from the downtrend.

Meanwhile, the Bollinger Bands Width contracted 13%, and the FBMACE continues its consolidation. If the Bollinger Bands Width should continue to contract, the FBMACE is likely to consolidate in sideways, until the re-expansion of the Bollinger Bands, then only the FBMACE would begin its new movement. Supports for the FBMACE remain at 3950 and 3810 WinChart Automatic Fibonacci Retracement while the resistance remains at the 14, 21, 31 EMA.

As circled at B, the WinChart RSI is rising slowly, breaking above the 50% level by margin on Friday. Although the WinChart RSI has not shown any bullish mid term signal, it is a sign implying that the mid term market strength is gradually improving.

As circled at C, the Stochastic remains below 50% level, and therefore, the market movement for the short term is still on the weaker side. Generally, the Stochastic has to break and remain above 70% level, in order to sustain a short term bullish movement.

In conclusion, the FBMACE is still consolidating while resisted by the 14, 21, 31 EMA, with some negative biased. Nevertheless, the contraction of the Bollinger Bands Width suggests that the FBMACE is also gearing up for a new movement, and the direction of the new movement shall only be revealed once the Bollinger Bands Width re-expand.

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