Meanwhile, the Bollinger Bands has not expanded significantly, and this suggests that the FBMACE is still consolidating. When the Bollinger Bands re-expands, then only we shall determine the new direction for the FBMACE by the relative position of the FBMACE, above or below the Bollinger Middle Band.

As circled at B, the Stochastic declined slightly more, but it has not broken below 30%. Therefore, it has not signaled a bearish short-term movement for the FBMACE. If the FBMACE should continue its narrow sideways movement, the Stochastic is expected to stay around 50% level.

As circled at C, the MACD histogram is still falling, thus the Rounding Top is still visible. Technically, when the MACD histogram is still falling, it suggests that the FBMACE could be losing strength.

In short, the FBMACE has not broken away from its trendless sideways movement. In additional to the Bollinger Bands, readers can monitor any break out above the 4318 or below 4190, which could signal a breakout from this consolidation.

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