As shown on the chart, the FBMACE continue to rebound on Wednesday, gaining 38.33 points or 0.9%. Since the FBMACE broke above the 4296 WinChart Automatic Fibonacci Retracement, the 4296 WinChart Automatic Fibonacci Retracement is now the support followed by the 4180 WinChart Automatic Fibonacci Retracement; while the resistance is at 4390 WinChart Automatic Fibonacci Retracement as well as the 14, 21, 31 EMA.

As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic resistance for the FBMACE. This suggests that the downtrend of the FBMACE is still intact. Technically, the FBMACE has to break above the 14, 21, 31 EMA in order to break away from the bearish biased movement.

As circled at B, the WinChart RSI rebounded, but failed to break above the 30% level, therefore, this suggests that the mid term market sentiment is still weak. If the WinChart RSI should break above 30% level, the FBMACE is expected to regain some strength.

As circled at C, the Stochastic breaks above 30% level, and touching 50% level. This suggests that the FBMACE is having its technical rebound, and if the Stochastic should continue rising, the technical rebound is expected to carry on. However, technically, the Stochastic has to break and maintain above 70% level, in order for the FBMACE to regain its short term bullish position.

In conclusion, the FBMACE is now having a technical rebound, but since it is still staying below the dynamic resistance, it has not broken away from its bearish biased trend. Nevertheless, a rebound is still a positive signal for there is a chance for the FBMACE to regain some losing ground.

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