On the last trading day of the year 2009, the FBMACE gained 38.27 points or 0.9%, to close at 4299.58 points. As indicated by A, the FBMACE is now testing the 4302 WinChart Automatic Fibonacci Retracement and the 4302 is still the resistance for the FBMACE, while the supports are at the Bollinger Middle Band dynamic support followed by the 4187 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded 42%, while the FBMACE is still above the Bollinger Middle Band, and therefore, the Bollinger Bands is still suggesting a bullish signal for the FBMACE.

As circled at B, the Stochastic touched 100% on Thursday, suggesting that the short term movement of the FBMACE is indeed strong, but however, it has started to get over-heated. Nevertheless, provided that the Stochastic is still above 70% level, the short term movement for the FBMACE is still bullish biased.

As circled at C, the MACD histogram is still rising, which suggesting that the FBMACE is still gaining strength. Therefore, the positive momentum of the FBMACE is expected to carry on until the MACD histogram should form a Rounding Top.

In conclusion, the FBMACE is picking up some strength as it returned to above the Bollinger Middle Band with the Bollinger Bands expanding. If the Bollinger Bands should continue to expand while the FBMACE is still supported by the Bollinger Middle Band, it would break above the 4302 resistance and test the next resistance which is found at 4417 WinChart Automatic Fibonacci Retracement.

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