As indicated by A, after forming a candlestick with a long upper shadow last week, the FBMACE retreated on Monday, closing 6.29 points or 0.1% lower. Resistance for the FBMACE is at 4789.97 WinChart Automatic Fibonacci Retracement while the support is at 4560 WinChart Automatic Fibonacci Retracement as well as the Bollinger Middle Band dynamic support.

As shown on the chart above, the Bollinger Bands expanded only16%, from last Friday's 40% expansion rate. This suggests that the Bollinger Bands might be contracting, and if the Bollinger Bands should contract, it would be a signal suggesting that the FBMACE is likely to consolidate or a technical correction. Generally, the Bollinger Middle Band is the first target of a technical correction.

As circled at B, the Stochastic is still above 70% level, which is a short term bullish territory. Provided that the Stochastic is still above 70% level, the market movement for the short term is still bullish biased. If the Stochastic should break below 70% level, it would be an end to the short term bullishness of the FBMACE.

As circled at C, the MACD histogram is still rising, while has not shown a Rounding Top signal. This suggests that the FBMACE short term is still improving. If the MACD histogram should form a Rounding Top, it would be a signal suggesting that the FBMACE is losing strength, or entering a consolidation.

Despite having a mild technical correction, the FBMACE is still above the Bollinger Middle Band, suggesting that the immediate outlook for the FBMACE is still positive. Technically speaking, the best consolidation would be a low fluctuated, sideways movement.

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