As indicated by A, the FBMACE is still resisted by the 4485 WinChart Automatic Fibonacci Retracement, ended 40.07 points lower to close at 4444.55 points. Therefore, the immediate resistance for the FBMACE is still at 4485 WinChart Automatic Fibonacci Retracement while the supports are still the Bollinger Middle Band dynamic support, followed by the 4390 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands only expanded 5%. When compared to the previous expansion rate, it implies that the Bollinger Bands might be contracting. Therefore, this implies that the FBMACE is about to consolidate or have its technical correction.

As circled at B, the Stochastic retreated slightly, while still able to maintain its position above the 70% level. Technically, if the Stochastic should break below 70% level, it will be an end to the short term bullish signal, and the FBMACE is likely to consolidate, or have its technical correction.

As circled at C, although the MACD histogram has not formed a Rounding Top, the rising of the MACD histogram has obviously slowed down. Therefore, if the MACD histogram should form a Rounding Top, it would be a signal suggesting a consolidation for the FBMACE.

In conclusion, the FBMACE is set to have its technical correction, but it is still staying above the Bollinger Middle Band, and therefore, the immediate outlook for the FBMACE is still on the positive side.

Find this analysis useful? Why not share it with others? Click Here to send this to a friend

Straits Index (M) Sdn Bhd
No. 16, Jalan LP 1A / 5, Lestari Perdana,
43300 Seri Kembangan, Selangor
Hotline: (03) 8941 6828  (5 lines)   Fax: (03) 8941 9828    
Email: info@straitsindex.com
© Copyright 1997-2010 Straits Index (M) Sdn Bhd All rights reserved