As indicated by A, the FBMACE tested the 4485 WinChart Automatic Fibonacci Retracement again on Monday, while managed to close above the 4485 WinChart Automatic Fibonacci Retracement. Therefore, support for the FBMACE is still at 4485 while the resistance is at 4601 WinChart Automatic Fibonacci Retracement.

Meanwhile, as shown on the chart above, the FBMACE is still supported by the 14, 21, 31 EMA, this suggests that despite the technical correction, the FBMACE has not formed a downtrend. If the FBMACE should rebound from the 14, 21, 31 EMA, there is a chance for the uptrend to resume.

As circled at B, the WinChart RSI continues falling, while still have not broken below the 50% level. Nevertheless, with the WinChart RSI below 70% level, this suggests that the mid term bullish signal is over, unless the WinChart RSI could return to above 70% level in the immediate term.

As circled at C, the Stochastic is still falling, while staying below the 30% level. This suggests that the short term bearish signal remains intact. If the Stochastic should break above 30% level, the FBMACE is expected to rebound. However, the FBMACE would only resume its bullishness when the Stochastic should break above and maintain above 70% level.

In conclusion, the FBMACE had a technical correction, but it has not formed a downtrend yet. This is because it is still supported by the 14, 21, 31 EMA as well as the 4485 WinChart Automatic Fibonacci Retracement. Therefore, if the FBMACE should rebound from the 14, 21, 31 EMA, there is a chance for the FBMACE to resume its uptrend, and re-test the 4601 WinChart Automatic Fibonacci Retracement.

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