Meanwhile, the Bollinger Bands contracted on Wednesday, suggesting that the FBMACE is likely to consolidate. However, as the FBMACE is still above the Bollinger Middle Band, the immediate technical outlook for the FBMACE is still on the positive side.

As circled at B, the Stochastic quickly returned to above 70%, after staying below 70% briefly. If the Stochastic could maintain above 70%, the market movement for the short term shall return to bullish bias.

As circled at C, the MACD histogram is still falling, thus the Rounding Top is still sighted. The falling of the MACD histogram suggests that the FBMACE is losing strenght, which is a normal reaction during a consolidating stage. Generally, the weakening of the FBMACE is expected to continue until the MACD histogram should form a Rounding Bottom.

In conclusion, the FBMACE had a sharp correction due to its prolonged over-heated condition last week. Nevertheless, the uptrend remains intact as the 14, 21, 31 EMA is still firmly support ing the FBMACE.

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