Meanwhile, the Bollinger Bands is still expanding, while the FBMACE stays below the Bollinger Middle Band. Therefore, the Bollinger Bands is still showing a negative signal, and this negative signal shall remains intact until the Bollinger Bands should begin to contract.

As circled at B, the Stochastic stays below 30£¥, in the short term bearish territory. Therefore, the market movement for the short term is expected to stay weak, until the Stochastic could break above 30%.

As circled at C, the MACD histogram is still falling, and the falling of the MACD histogram suggests that the FBMACE is still losing strength. Therefore, the weakening movement of the FBMACE is expected to carry on until the MACD histogram should stop falling, and form a Rounding Bottom.

In short, the technical outlook for the FBMACE remains weak, as it is now below the Bollinger Middle Band, as well as the 14, 21, 31 EMA. In other words, it could be forming a downtrend, until it could break away from the 14, 21, 31 EMA dynamic resistance.

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