As shown on the chart above, the FBMACE broke below the 3990 WinChart Automatic Fibonacci Retracement and marked a 10 months new low. If the FBMACE should fail to rebound, the next support for the FBMACE is seen to be at 3814 WinChart Automatic Fibonacci Retracement while the resistance would be at 4000 psychological level followed by 4044 WinChart Automatic Fibonacci Retracement.

As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic resistance for the FBMACE. Technically, with the index staying below the dynamic resistance, the technical outlook shall remains weak.

As circled at B, the WinChart RSI is still falling while staying below 30% level, thus the mid term strength for the FBMACE shall remains weak.

As circled at C, the Stochastic is also falling together with the WinChart RSI, thus staying below 30% level, in the short term bearish territory. Therefore, this suggests that the market movement for the short term is still bearish biased.

In conclusion, after breaking below the 4130 WinChart Automatic Fibonacci Retracement, the FBMACE resumed its downtrend, while the 14, 21, 31 EMA is still serving as the dynamic resistance. Technically, the FBMACE has to break above the dynamic resistance in order to break away from this downtrend, or else, any rebound below the dynamic resistance is only a technical rebound, not a reversal signal.

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