As indicated by A, the FBMACE found its support at 4329 WinChart Automatic Fibonacci Retracement, and rebounded 10.71 points or 0.2%, this suggests that the 4329 WinChart Automatic Fibonacci Retracement is now the support for the FBMACE, while the resistance remains at 4488 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 5%, suggesting that the FBMACE is consolidating, with the Bollinger Middle Band being the dynamic support. If the FBMACE should continue supported by the Bollinger Middle Band, there is a chance for the FBMACE to resume its uptrend and re-test the 4488 resistance.

As circled at B, the Stochastic stopped falling, but has not yet returned to above 70% level. If the Stochastic should break above 70% level, it would suggest that the FBMACE short term movement is returning to bullish biased. However, if the Stochastic should remains below 70% level, the consolidation of the FBMACE is expected to continue.

As circled at C, the MACD histogram is still falling, while the Rounding Top is still intact. This suggests that the FBMACE short term movement is weakening, as it is consolidating. If the MACD histogram should continue falling, the weakening movement of the FBMACE is expected to continue, until the MACD histogram should form a Rounding Bottom.

Technically speaking, the ideal consolidation is a low-fluctuation, sideways movement. If the FBMACE should move sideways above the 4329 WinChart Automatic Fibonacci Retracement as well as the Bollinger Middle Band, there is a good chance that the FBMACE would resume its uptrend, but it has to be confirmed by the re-expansion of the Bollinger Bands. On the other hand, if the FBMACE should break below the Bollinger Middle Band, the consolidation of the FBMACE continues.

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