The FBMACE had its intra-day low reaching 4092.29 points, with a loss of 77.01 points, but it managed to rebound afterward, and even closed with at gain of 22.57 points or 0.54%, at 4148.14 points. Support for the FBMACE remains at 4000 point, while the resistance is at 4218 WinChart automatic Fibonacci retracement.

As indicated by B, the Stochastic stays above 70%, suggesting that the short term movement of the FBMACE is still positive. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a short term technical correction.

As indicated by C, the MACD line continue rising on Wednesday, and this suggests that the mid to long term movement of the FBMACE is still improving, but not yet back to the positive region. Meanwhile, the MACD histogram is also rising, while not showing a Rounding Top yet. If the MACD histogram should form a Rounding Top, it means that the FBMACE is losing strength (for the short term) again.

In conclusion, it seems like that the FBMACE is breaking away from the L1 downtrend, but even if the FBMACE should break away from the downtrend, it does not mean that the FBMACE would reverse into an uptrend immediately. Technically, the FBMACE would have to form a Higher-low, first, then only it has one of the uptrend characteristics.

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