Meanwhile, the Bollinger Bands contracted 6%, suggesting that the FBMACE is entering its consolidation. Therefore, the market direction is likely to be unclear, until the re-expansion of the Bollinger Bands.

As indicated by B, the Stochastic fell below 30% by margin, entering the short term bearish territory. If the Stochastic should continue to stay below 30%, the market movement for the short term is expected to be bearish biased.

As circled at C, the MACD histogram is still falling, thus the Rounding Top is still in sight. This suggests that the FBMACE is still losing strength, and the weakening of the FBMACE movement is expected to continue until the MACD histogram should form a Rounding Bottom.

In short, the FBMACE has failed to form an uptrend, therefore, it is likely to consolidate with bearish biased. Support for the FBMACE is at 3648 level while the resistance is at 3892.

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