The FBMACE ended lower on Monday, but as it approached the 4130 WinChart Automatic Fibonacci Retracement, it found its temporary support and stopped falling, losing a total of 64.24 points or 1.5%. As indicated b y A, ever since breaking below the 14, 21, 31 EMA, the 14, 21, 31 EMA is now serving as the dynamic resistance for the FBMACE. Technically, if the FBMACE should remain below the 14, 21, 31 EMA, the technical outlook shall remain bearish biased.

Support for the FBMACE is at 4130 WinChart Automatic Fibonacci Retracement while the resistance is at 4280 WinChart Automatic Fibonacci Retracement other than the 14, 21, 31 EMA. Meanwhile, the Bollinger Bands expanded 76% with the FBMACE below the Bollinger Middle Band, thus the technical outlook for the FBMACE is weak.

As circled at B, the Stochastic is still below 30%, which is the short term bearish territory. The market movement for the short term is expected to be weak, unless the Stochastic should break above 30% successfully.

As indicated by C, the MACD histogram is still falling and breaking below the zero level. This suggests that the FBMACE is still 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 4130 WinChart Automatic Fibonacci Retracement, and if the FBMACE should rebound from this level, it could consolidate. However, any rebound below the falling dynamic resistance would not mean a reversal of trend, thus the technical outlook remains weak.

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