However, the FBMACE is still now showing signal of gaining strength. This is because the Bollinger Bands is still contracting. If the Bollinger Bands should re-expand with the FBMACE above the Bollinger Middle Band, then only it is a positive signal for the FBMACE. Support for the FBMACE remains at 3622 while the resistance is at 3891 WinChart Automatic Fibonacci Retracement.

As circled at B, the Stochastic rebounded and broke above 50%, without entering the short term bearish territory. If the Stochastic should stay around 50% level, the FBMACE is likely to consolidate in sideways.

As circled at C, the MACD is still falling, thus no Rounding Bottom is sighted yet. This suggesting that the FBMACE overall is still losing strength, despite it managed to return to above the 14, 21, 31 EMA.

In short, the sideways consolidation is still on. Meanwhile, with the Bollinger Bands contracting, significance of the secondary indicators signal will be reduced, and during this sideways movement, the best indicator to monitor is the Bollinger Bands.

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