Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market analysis
Send to a Friend FBM ACE 22/09/2010
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After being resisted at the 3892 level, the FBMACE continued its retreat on Wednesday, losing 36.47 points or 0.9% to close at 3806.72 points. As indicated by A, the FBMACE is testing the 14, 21, 31 EMA.

Meanwhile, the Bollinger Bands contracted again, suggesting that the FBMACE is consolidating, and the consolidation is expected to carry on until the Bollinger Bands re-expands. Support for the FBMACE is at the 14, 21, 31 EMA dynamic support while the resistance is at 3892.

As indicated by B, the Stochastic fell below 70%, and marginally below 50%, which ended the short term bullish signal. If the Stochastic should break below 30%, it would be a short term bearish signal for the FBMACE.

As circled at C, the MACD histogram is still falling, thus showing a Rounding Top, suggesting that the FBMACE is losing strength. The weakening of the FBMACE is likely to continue until the MACD histogram should form a Rounding Bottom.

In short, the FBMACE is testing 14, 21, 31 EMA dynamic support, which is a key level between an uptrend formation, and the resume of its downtrend. If the Bollinger Bands should re-expand with the FBMACE below the Bollinger Middle Band, it would be a bearish signal for the FBMACE.

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