Meanwhile, the Bollinger Bands expanded only 3%, suggesting that the FBMACE is fluctuating lesser, as though it is consolidating. Nevertheless, if the Bollinger Bands should re-expand with the FBMACE still below the Bollinger Middle Band, there are more downside risk for the FBMACE.

As circled at B, the Stochastic remains below 30%, in the short term bearish territory. Therefore, this suggests that the short term movement of the FBMACE is still weak, unless the Stochastic could break above 30%, then it would be a signal suggesting a beginning of a technical rebound.

As indicated by C, the MACD histogram is still falling, suggesting that the FBMACE is still losing strength, and the weakening movement of the FBMACE is expected to carry on until the MACD histogram should form a Rounding Bottom.

In conclusion, technical outlook remains weak for the FBMACE as it is below the Bollinger Middle Band as well as the 14, 21, 31 EMA. Furthermore, regional markets were mostly lower, thus the FBMACE is less likely to regain its strength soon.

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