As shown on the chart above, the FBMACE failed to stay above the 4280 WinChart Automatic Fibonacci Retracement, and losing 34.08 points or 0.8%. Therefore, the 4280 WinChart Automatic Fibonacci Retracement is now the resistance, and the support for the FBMACE is seen at 4130 WinChart Automatic Fibonacci Retracement. As indicated by A, the FBMACE is now testing the 14, 21, 31 EMA dynamic support. If the FBMACE should break below the 14, 21, 31 EMA, the technical outlook shall turn negative.

Meanwhile, the FBMACE is also testing the Bollinger Middle Band. However, since the Bollinger Bands is still contracting, it suggests that the FBMACE is still consolidating.

As circled at B, the Stochastic breaks below 70%, and marked an end to the short term bullish signal. If the Stochastic should continue falling, the short term movement of the FBMACE is expected to be weak.

As circled at C, the MACD histogram is still falling, suggesting that the FBMACE is gradually losing strength, and the weakening movement of the FBMACE is likely to carry on until the MACD histogram should form a Rounding Bottom.

In conclusion, the FBMACE is testing the important dynamic support. However, since the Bollinger Bands has not expanded, the FBMACE is considered consolidating. Nevertheless, if the Bollinger Bands should re-expand with the FBMACE above the Bollinger Middle Band, there is a chance for the FBMACE to resume its uptrend; otherwise, if the Bollinger Bands should expands with the FBMACE below the Bollinger Middle Band, it would be a bearish signal.

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