On Wednesday, the FBMACE gained 7.87 points or 0.2% to close at 3977.95 points. Support for the FBMACE remains at 3900 WinChart Automatic Fibonacci Retracement while the resistance is at 4110 WinChart Automatic Fibonacci Retracement, as well as the 14, 21, 31 Exponential Moving Average dynamic resistance.

As indicated by A, the FBMACE is still staying below the falling 14, 21, 31 EMA, thus the technical outlook for the FBMACE is still weak. Fortunately, with the support of the 3900, the FBMACE rebounded without dropping further.

As circled at B, the Stochastic remains below 30%, suggesting that the short term movement of the FBMACE is still on the bearish side. If the Stochastic should break above 30%, it would be a signal suggesting a beginning of a technical rebound.

As indicated by C, the MACD line is still falling while staying below the zero level, suggesting that the mid to longer term movement of the FBMACE is still on the weaker side.

In conclusion, the downtrend of the FBMACE is still intact, but if the FBMACE should remain supported by the 3900, it could prolong the sideways consolidation, and if the external market sentiment should gradually recover, the FBMACE would have a chance to break away from the downtrend.

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