Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market analysis
Send to a Friend FBM ACE 11/01/2010
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As indicated by A, the FBMACE retreated on Tuesday, losing 27.89 points or 0.62%. The 4476 WinChart Automatic Fibonacci Retracement remains at the immediate resistance to the FBMACE while the support is still at 4318 WinChart Automatic Fibonacci Retracement as well as the 14, 21, 31 EMA dynamic support.

Meanwhile, the Bollinger Bands contracted 5%, and this suggests that the FBMACE is likely to consolidate, or have a technical correction. If the Bollinger Bands should continue to narrow down, the consolidation of the FBMACE is expected to carry on.

As circled at B, the Stochastic fell slightly, but still above 70%. If the Stochastic should break below 70%, it would mark an end to the short term bullish signal, and a beginning of a technical correction signal.

As circled at C, the MACD histogram started falling, and might be forming a Rounding Top. The falling of the MACD histogram suggests that the FBMACE is losing strength, and the weakening movement of the FBMACE is expected to carry on until the MACD histogram should form a Rounding Bottom.

In conclusion, the FBMACE has been rising for many days, and a technical correction is only natural. Provided that the FBMACE is still supported by the 14, 21, 31 EMA, the technical outlook shall remain positive.

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