As shown on the chart above, the FBMACE had its intra-day low reaching 4220.90 points, but it started to rebound in the afternoon session, and closing the day at 4281.95 point, gaining 18.10 points or 0.4%. Resistance for the FBMACE are still at 4296 WinChart Automatic Fibonacci Retracement followed by the 14, 21, 31 EMA, while the support is at 4180 WinChart Automatic Fibonacci Retracement.

As indicated by A, if the FBMACE should continue to rebound, the 14, 21, 31 EMA would be a first target. If the FBMACE could break above the 14, 21, 31 EMA, there is a chance for the FBMACE to break away from its current downtrend.

As circled at B, the WinChart RSI is still falling while staying below 30% level. This suggests that the mid term market sentiment is still weak, and the weakening market strength is expected to carry until the WinChart RSI should break above 30% level.

As circled at C, the Stochastic rebounded, but it has not broken above 30% level. Therefore, the short term bearish signal remains intact. If the Stochastic should break above 30% level, it would be a signal suggesting a beginning of a short term technical rebound.

In conclusion, it is perfectly normal to have a rebound after falling for a few days. However, technically, any rebound below the dynamic resistance (14, 21, 31 EMA or the Bollinger Middle Band) should only be viewed as a technical rebound, not a sign of a reversal.

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