Straits Index (M) Sdn Bhd
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Daily Market Analysis
Send to a Friend FBM ACE 23/11/2010
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As indicated by A, the FBMACE had its intra-low testing the 31-day EMA again, and it was still supported by the 31-day EMA, and rebounded even with a gain of 17.17 points or 0.42%, to close at 4130.20 points. Resistance for the FBMACE is at 4500 point as well as its recent high of 4350, while the support remains at 3994 or the 4000 psychological mark.

As indicated by B, despite the rebound, the Stochastic remains below 30%, in the short term bearish territory. This suggests that the short term movement of the FBMACE is still weak.

As indicated by C, the MACD histogram is still falling, thus not yet forming a Rounding Bototm. This suggests that the FBMACE is still losing strength, and the weakness of the FBMACE is expected to continue until the MACD histogram should form a Rounding Bottom.

In conclusion, since the FBMACE is still supported by the 31-day EMA, it suggests that the uptrend is still intact, as the 14, 21, 31 EMA is still serving as the dynamic support. However, since there are negative signals from some technical indicators, it implies that the overall picture of the FBMACE is not entirely positive.

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