On Thursday, the FBMACE rebounded strongly, gaining 106.09 points to close at its daily high of 3795.30. Support for the FBMACE remains at 3587 WinChart Automatic Fibonacci Retracement while the resistance is still at 3816.56 WinChart Automatic Fibonacci Retracement.

Despite the strong rebound, the 14, 21, 31 EMA is still serving as the dynamic resistance, as indicated by A, and therefore, the downtrend of the FBMACE is still intact, while technical outlook remains on the lower side.

As circled at B, the Stochastic breaks above 30%, suggesting a beginning of a technical rebound. If the Stochastic should break above 50%, the technical rebound is expected to carry on, and if the Stochastic could break and maintain above 70%, it would be a short term bullish signal for the FBMACE.

As indicated by C, the +DI line of the DMI rises, but still it has not broken above the -DI line, thus the bearish signal remains intact.

The technical rebound of the FBMACE is pushing the FBMACE closer to the dynamic resistance, therefore, the FBMACE is set to test the 14, 21, 31 EMA. If the FBMACE should break above the 14, 21, 31 EMA successfully, it would break away from this downtrend, but if the FBMACE should be resisted by the 14, 21, 31 EMA and starts to fall again, the downtrend would resume, with negative technical outlook.

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