Meanwhile, the Bollinger Bands is still not expanding, and this suggests that the market direction for the FBMACE is unclear. But with the FBMACE now above the Bollinger Middle Band, the immediate technical outlook for the FBMACE is on the positive side.

As circled at B, the Stochastic breaks above 30%, leaving the short term bearish territory. This is a signal suggesting a short term technical rebound, and if the Stochastic could break above 70%, it would be a short term bullish signal for the FBMACE.

As circled at C, the MACD histogram started rising, and therefore, not forming a Rounding Top. The rising of the MACD histogram suggests that the FBMACE is picking up some strength, and the improvement of the FBMACE is likely to sustain until the MACD histogram should form a Rounding Top.

In conclusion, the FBMACE is now having its technical rebound, but the overall technical outlook is still weak, as the FBMACE is still resisted by the 14, 21, 31 EMA. If the FBMACE could break above the 14, 21, 31 EMA, then forms a Higher-low, it would be a positive reversal signal for the FBMACE.

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