As indicated by A, the FBMACE tested the 3900 level on Thursday, and losing only 6.63 points or 0.2%. This suggests that the 3900 WinChart Automatic Fibonacci Retracement is still the immediate support for the FBMACE, while the resistance is seen at 4110 WinChart Automatic Fibonacci Retracement.

Meanwhile, the 14, 21, 31 EMA is still falling while serving as the dynamic resistance for the FBMACE, therefore, the downtrend remains intact, and technical outlook shall remains bearish biased.

As circled at B, the Stochastic is still below 30%, thus the short term movement of the FBMACE is still bearish biased. It is important not to be mistaken that when the Stochastic should break below 30%, it would suggest that the stock price or index is at a lowest point and ready for a rebound. In fact, to show a bullish signal, the Stochastic has to break and stay above 70% level.

As circled at C, the -DI line is still rising together with the ADX, this suggests that the volatility of the FBMACE is still on the downside biased, thus it is forming a downtrend. As long as the ADX is still rising together with the -DI line, the downtrend is expected to carry on, until the +DI should break above the -DI line.

In conclusion, the FBMACE downtrend remains, despite being supported by the 3900 level.

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