Meanwhile, the Bollinger Bands has not expanded clearly, and this suggests that the FBMACE is still consolidating. If the Bollinger Bands should re-expand with the FBMACE above the Bollinger Middle Band, it would be a positive signal suggesting some bullish biased movement for the FBMACE.

As circled at B, the Stochastic retreated slightly after hitting 100% on Monday. However, the Stochastic remains above 70%, in the short term bullish territory. This suggests that the short term movement of the FBMACE is positive, until the Stochastic should break below 70%.

As indicated by C, the MACD histogram is still rising, thus the Rounding Bottom signal remains intact. The rising of the MACD histogram suggests that the FBMACE is still picking up some strength and the improvement is expected to carry on until the MACD histogram should form a Rounding Top.

In short, the FBMACE rebounded from its downtrend, and now consolidating. If the FBMACE should break above the 14, 21, 31 EMA, and together with the bullish Bollinger Bands signals, it would break away from the downtrend.

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