As indicated by A, the FBMACE break above the 3860 level, to close at 3879.07 points, gaining 55.34 points or 1.45%. Since the FBMACE is only breaking above 3860 by margin, the break out is yet to be confirmed. Nevertheless, the next resistance for the FBMACE is at 3970, which is the 50% Fibonacci Retracement line. Support for the FBMACE is at 3640.

As indicated by B, the Stochastic is still above 70%, in fact, touching 100% right now. This suggests that the short term movement of the FBMACE is indeed bullish, but is over-heated, thus a pull back is likely to take place in the near future.

As indicated by C, the MACD histogram ticked higher as the FBMACE is still gaining strength. Therefore, there is no sign of Rounding Top for now, and this suggests that the short term movement of the FBMACE is still positive.

In conclusion, the FBMACE is breaking away from its downtrend, but not yet forming an uptrend. If the FBMACE could form higher-lows above the 14, 21, 31 EMA, it would be a signal suggesting an uptrend formation.

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