As indicated by A, the FBMACE rebounded from the 14, 21, 31 EMA, gaining 34.42 points or 0.9% to close at 3920.70 points. This suggests that the 14, 21, 31 EMA is still serving as the dynamic support for the FBMACE, thus the technical outlook remains positive.

Meanwhile, the Bollinger Bands expanded 10%, with the FBMACE above the Bollinger Middle Band. The bullish biased movement of the FBMACE is expected to continue until the contraction of the Bollinger Bands. Support for the FBMACE is at 3893 WinChart Automatic Fibonacci Retracement while the resistance is at 4060 level.

As circled at B, the WinChart RSI stays above 70%, in the mid term bullish territory. This suggests that the market mood for the mid term is still positive, thus it would help sustain the current positive market strength.

As circled at C, the Stochastic remains above 70%, in the short term bullish territory. This suggests that the market movement for the short term is still bullish biased. The short term bullishness is expected to carry on until the Stochastic should break below 70%.

In conclusion, with the FBMACE above the Bollinger Middle Band as well as the 14, 21, 31 EMA, the technical outlook remains position, thus the FBMACE is likely to 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