On Friday, the FBMACE broke below the 3900 support, and ended 89.38 points or 2.3% lower. Currently, the support for the FBMACE is at 3814 WinChart Automatic Fibonacci Retracement while the resistance is at 4044 WinChart Automatic Fibonacci Retracement.

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

As circled at B, the Stochastic is still below 30%, and therefore, the short term bearish signal remains intact and the short term movement of the FBMACE is expected to be weak.

As circled at C, the MACD histogram failed to stay above zero level, suggesting that the FBMACE movement is indeed weakening, and the weakening movement is expected to carry on until the MACD histogram should form a Rounding bottom.

In conclusion, the FBMACE broke below the 3900 level after being supported by the 3900 for about two weeks, and therefore, the FBMACE resumes its downtrend, and the technical outlook remains weak, until a valid break out above 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