Meanwhile, the Bollinger Bands expanded 53%, with the FBMACE above the Bollinger Middle Band, thus the positive movement of the FBMACE continues. If the Bollinger Bands should continue to expand, more upside movement is expected for the FBMACE.

As circled at B, the WinChart RSI breaks above 70%, entering the mid term bullish territory, suggesting that the FBMACE is gaining strength. If the WinChart could stay above 70%, more upside movement for the FBMACE is expected.

As circled at C, the Stochastic remains above 70%, in the short term bullish territory. Therefore, this suggests that the short term movement of the FBMACE is bullish biased, and the bullishness is expected carry on until the Stochastic should break below 70%, then it would be a signal suggesting a beginning of a technical correction.

In conclusion, after breaking above the 14, 21, 31 EMA, the FBMACE is now breaking away from its downtrend. If it should be supported by the 14, 21, 31 EMA, it would reverse and form an uptrend.

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