As shown on the chart above, the FBMACE opened higher on Thursday, but started falling immediately after the opening, breaking below the 4296 WinChart Automatic Fibonacci Retracement, losing 63.07 points or 1.5%. Resistance for the FBMACE is now 4296 WinChart Automatic Fibonacci Retracement as well as the 14, 21, 31 EMA, while the support is at 4180 WinChart Automatic Fibonacci Retracement.

As indicated by A, despite the technical rebound of the FBMACE for the past two days, the 14, 21, 31 EMA is still serving as the dynamic resistance for the FBMACE. This suggests that the downtrend for the FBMACE remains intact.

As circled at B, the WinChart RSI is still staying below 30% level, while the mid term bearish signal for the FBMACE is still intact. This suggests that the mid term market strength for the FBMACE is still weak, until the WinChart RSI could break above 30%.

As circled at C, the Stochastic failed to break above 50% level, and fell below 30% level again, re-entering the short term bearish territory. Therefore, the Stochastic is now showing a short term bearish signal again. If the Stochastic should remain below 30% level, the market movement for the short term is expected to weak.

In conclusion, the technical rebound for the past two days was over, as the FBMACE is still resisted by the falling dynamic resistance. Therefore, if the FBMACE should remain resisted by the dynamic resist, the FBMACE is expected to resume its downtrend.

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