Meanwhile, the Bollinger Bands contracted 7%, suggesting that the FBMACE is still consolidating, and the consolidation is expected to carry on until the re-expansion of the Bollinger Bands, then the direction of the new movement shall be determined by the position of the FBMACE, above or below the Bollinger Middle Band. Support for the FBMACE is at 3622 level while the resistance is at 3892.81 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic remains above 70%, suggesting that the short term movement of the FBMACE is still on the positive side, and the positive short term movement is expected to carry on until the Stochastic should break below 70%.

As circled at C, the +DI line of the DMI is still rising, but the ADX line is, on the other hand, falling. Therefore, it is not a bullish signal yet. Generally, when this circumstance appears, the FBMACE is likely to move sideways.

In conclusion, the FBMACE has not broken away from its downtrend, but with its short term movement being on the positive side, it is likely to consolidate, until the re-expansion of the Bollinger Bands.

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