As shown on the chart, the FBMACE rebounded strongly on Tuesday, closing at its daily of 4070.44 points, up 46.53 points or 1.2%. As indicated by A, despite the strong rebound, the FBMACE is precisely resisted by the 14, 21, 31 EMA, suggesting that the FBMACE has not broken away from the bearish biased movement.

On Tuesday, the Bollinger Bands contracted 23%, suggesting that the FBMACE is likely to consolidate. If the Bollinger Bands Width should continue to contract, the FBMACE is expected to move sideways. Supports for the FBMACE remain at 3950 and 3810 WinChart Automatic Fibonacci Retracement, while the resistance is still at the 14, 21, 31 EMA.

As circled at B, the WinChart RSI rebounded, but still below 50% level. This shows that the mid term strength for the FBMACE is still on the negative side. Generally, the WinChart RSI has to break above 50% and 70% level in order to signal a mid term bullish strength for the FBMACE.

As circled at C, the Stochastic rebounded, breaking above 30% and 50% level on Tuesday, away from the short term bearish region. When the Stochastic breaks above 30% level, it is a signal suggesting a beginning of a technical rebound. If the Stochastic should break above 50% and 70% level, the short term movement of the FBMACE is likely to improve.

Despite the rebound, the FBMACE remains resisted by the 14, 21, 31 EMA dynamic resistance, and therefore, it has not totally broken away from its bearish biased movement. Nevertheless, the contraction of the Bollinger Bands suggests that the FBMACE might be consolidating. In addition to that, the contraction of the Bollinger Bands also implies that the FBMACE is preparing for a new movement, and the direction of the new movement shall only be revealed once the Bollinger Bands re-expands.

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