As shown on the chart above, the FBMACE continue its sideways movement, while still testing the 14, 21, 31 EMA. Support for the FBMACE is at 3622.46 WinChart Automatic Fibonacci Retracement while the resistance is at 3892.81 WinChart Automatic Fibonacci Retracement.

As indicated by A, with the FBMACE staying below the 14, 21, 31 EMA, this suggests that the downtrend of the FBMACE is still intact, thus the technical outlook shall remains on the lower side.

As circled at B, the Stochastic breaks above 70%, entering the short term bullish territory. If the Stochastic should remain above 70%, the short term movement of the FBMACE is expected to improve further.

As indicated by C, despite the -DI retreated slightly, it is still staying above the +DI line, thus the bear market signal remains intact. Therefore, the bearish trend of the FBMACE shall remains in position until the +DI line could successfully break above the -DI line.

In conclusion, after moving sideways for more than a week, the FBMACE has not broken above the 14, 21, 31 EMA. If the FBMACE should retreat after being resisted by the 14, 21, 31 EMA, the lower target shall be at the 3622 WinChart Automatic Fibonacci Retracement.

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