On Monday, the FBMACE continued its sideways consolidation, losing 24.77 points or 0.6%. Support for the FBMACE is still at 3900 WinChart Automatic Fibonacci Retracement while the resistance is at 4110 WinChart Automatic Fibonacci Retracement.

As indicated by A, despite the sideways consolidation, the 14, 21, 31 EMA is still serving as the dynamic resistance for the FBMACE downtrend, thus the technical outlook shall remains bearish biased.

As circled at B, the Stochastic managed to stay above 30% after last Friday's technical rebound. However, since the Stochastic is still staying below 50%, this suggests that the market short term movement is still on the weaker side.

As circled at C, the MACD histogram is still rising with a Rounding Bottom, suggesting some improvement in the short term movement, and the improvement is expected to carry on until the MACD histogram should form a Rounding Top.

In conclusion, despite the improvement signal from Secondary indicators such as the MACD histogram and the Stochastic, the downtrend remains intact. Therefore, the priority of the analysis should be the primary indicator, in this case the 14, 21, 31 EMA.

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