As indicated by A, the FBMACE continued to rebound on Friday, gaining 13.58 points or 0.3%. The FBMACE is still testing the L1 downtrend line, together with the 14, 21, 31 EMA dynamic resistance. Support for the FBMACE is at 4000 mark.

As indicated by B, the Stochastic stays above 70%, in the short term bullish territory. This suggests that the short term movement of the FBMACE is bullish biased.

As indicated by C, the MACD line continued to rise up, and as a result, the MACD histogram is ticking higher, which suggests that the FBMACE is picking up strength for the short term. However, the mid to long term movement of the FBMACE is still weak.

In short, the downtrend for the FBMACE remains intact, until the FBMACE could successfully break above the L1 line. Even if the FBMACE should break above the L1 line, it does not mean that the FBMACE would immediate reverse to form an uptrend, not until it should form a Higher-Low after breaking above the L1 line.

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