As indicated by A, the Bollinger Bands expanded 16%, with the FBMACE below the Bollinger Middle Band, and therefore, the immediately outlook for the FBMACE is now bearish. Resistance for the FBMACE is at 4390 WinChart Automatic Fibonacci Retracement while the support is at 4180 WinChart Automatic Fibonacci Retracement.

Since the Bollinger Bands is now expanding, with the FBMACE below the Bollinger Middle Band, the bearish outlook is expected to carry on until the FBMACE could break above the Bollinger Middle Band, which is serving as the dynamic resistance.

As circled at B, the WinChart RSI is still falling, suggesting that the FBMACE is not gaining any strength, but instead, getting weaker. If the WinChart RSI should break below 30% level, it would be a mid term bearish signal for the FBMACE.

As circled at C, the Stochastic breaks below 30% level, entering the short term bearish territory. If the Stochastic should stay below 30% level, the bearish short term movement is likely to continue, until the Stochastic should break above 30% level.

In conclusion, the FBMACE has ended its consolidation, and now starting to fall. Technically, provided that the Bollinger Bands is still expanding with the FBMACE below the Bollinger Middle Band, the bearish outlook remains intact. If the Bollinger Bands should begin to contract again, it would be another consolidation signal for the FBMACE.

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