As indicated by A, the FBMACE opened higher on Monday, but failed to continue its early gains, ended 1.4 points lower to close at 3646.46 points. Therefore, the FBMACE has not confirmed broken above the 3640 resistance. Meanwhile, the FBMACE is also testing the 14, 21, 31 EMA dynamic resistance, thus suggesting that the downtrend of the FBMACE is still intact. Support for the FBMACE is at 3418.

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 still positive.

As indicated by C, the MACD histogram is still rising, suggesting that the short term movement of the FBMACE is still gaining strength. If the MACD histogram should later form a Rounding Top, it would be a signal suggesting that the FBMACE is losing strength. Since the MACD line is still staying below the zero level, it suggests that the mid to long term movement of the FBMACE is still weak.

In conclusion, the downtrend of the FBMACE remains intact, and the technical outlook is still negative for now. In order to have a reversal, the FBMACE must first break the 14, 21, 31 EMA dynamic resistance, then forms higher-lows or breaking above the next resistance ( making new high).

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