As indicated by A, the FBMACE ended lower (losing 41.07 points or 1%) on Wednesday, while breaking slightly below the 14, 21, 31 Exponential Moving Average – EMA. Resistance for the FBMACE remains at 4296 WinChart Automatic Fibonacci Retracement while the support is at 4180 WinChart Automatic Fibonacci Retracement.

Technically, if the FBMACE should break below the 14, 21, 31 EMA again, the 14, 21, 31 EMA would be serving as the dynamic resistance for the FBMACE again, thus the technical outlook for the FBMACE could turn bearish again.

As circled at B, the Stochastic breaks below 50% while still falling, suggesting that the FBMACE is still having its technical correction. If the Stochastic should break below 30% level, it would be a short term bearish signal for the FBMACE.

As circled at C, the MACD histogram started to fall on Wednesday, and it might be forming a Rounding Top. If the MACD histogram should form a Rounding Top, it would suggest that the FBMACE is turning weaker, and the weakening movement is expected to carry on until the MACD histogram should form a Rounding Bottom.

In conclusion, if the FBMACE should failed to return to above the 14, 21, 31 EMA, there is a risk for the FBMACE to resume its downtrend.

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