As shown on the chart above, the FBMACE rebounded on Wednesday, and now testing the 14, 21, 31 EMA, which is the dynamic resistance. Resistance for the FBMACE is at 4390 WinChart Automatic Fibonacci Retracement while the support is at 4296 and 4180 WinChart Automatic Fibonacci Retracement.

As indicated by A, the 14, 21, 31 EMA is also overlapping the 4390 WinChart Automatic Fibonacci Retracement, and therefore, this is likely going to be an important resistance for the FBMACE. If the FBMACE could break above this barrier, there is a good chance that the FBMACE would pick up more strength. However, if the FBMACE should be resisted at this level, the bearish biased movement shall remains intact.

As circled at B, the WinChart RSI continue rising, after breaking above 30% level. This suggests that the FBMACE is having its technical rebound. If the WinChart RSI should also break above 50% level, the mid term movement of the FBMACE is expected to improve.

As circled at C, the Stochastic is breaking above 70% level, entering the short term bullish territory. However, due to the FBMACE is still resisted by the 14, 21, 31 EMA, this signal is less affirmed. Nevertheless, if the Stochastic could remain above 70% level, the short term movement of the FBMACE is likely to improve further.

In conclusion, technical indicators are showing signs of improvement, but still, the downtrend remains intact as the FBMACE is still resisted by the dynamic resistance. If the FBMACE should break above the 14, 21, 31 EMA, it would break away from its downtrend.

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