As indicated by A, the FBMACE rebounded strongly on Thursday, gaining 72.14 points or 2.02%, to close at 3637.58 points. The FBMACE is set to re-test the 3640 resistance as well as the 14, 21, 31 EMA dynamic resistance, while its support is still at 3418.

As indicated by B, the Stochastic breaks above 70%, entering the short term bullish territory. Technically, as long as the Stochastic is still above 70%, the short term movement of the FBMACE is expected to improve.

As indicated by C, the MACD histogram rose in line with the rebound of the FBMACE, thus not yet forming a Rounding Top. This suggests that the FBMACE is not losing strength for now. However, the mid to long term movement of the FBMACE remains on the weaker side, until the MACD line could successfully break above the zero level.

In conclusion, despite the strong rebound, the downtrend for the FBMACE is still intact, not until the FBMACE could successfully break above the 14, 21, 31 EMA dynamic resistance.

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