On Monday, the FBMACE had its intra-day high reaching 4374.56 points, breaking above the 14, 21, 31 EMA. However, as profit taking kicked it, the FBMACE started to retreat, and at the close, it only managed to gain 12.18 points or 0.3%. As indicated by A, the FBMACE is still resisted by the 14, 21, 31 EMA, which is the dynamic resistance.

Meanwhile, the Bollinger Bands contracted another 10%, suggesting that the FBMACE is still consolidating. Nevertheless, resistance for the FBMACE is at 4390 WinChart Automatic Fibonacci Retracement while the support is at 4180 WinChart Automatic Fibonacci Retracement.

As circled at B, the WinChart RSI failed to stay above 50% level, while wandering around the 50% level. This is typical behavior of the WinChart RSI when the FBMACE is consolidating.

As circled at C, the Stochastic is still rising, suggesting that the technical rebound of the FBMACE is still intact. However, since the Stochastic has not broken above 70% level, there is not bullish signal yet for the short term movement.

In conclusion, despite the strong movement of the KLCI, the FBMACE only managed to rebound slightly, while it has not broken away from the bearish biased movement. Technically, the FBMACE has to break above 14, 21, 31 EMA, together with the Bollinger Bands re-expanding and the FBMACE has to be above the Bollinger Middle Band, then only it would be a bullish signal for the FBMACE.

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