FBM ACE 03/01/2012

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As indicated by A, after rebounding for a few days, the FBMACE is still testing the 14, 21, 31 EMA dynamic resistance. This suggests that the technical outlook for the FBMACE remains negative. Support for the FBMACE is at 4000.

As indicated by B, the Stochastic is now at 50%, which is the short term neutral region. Technically, the Stochastic would have to break above 70%, in order to trigger a short term bullish signal.

As circled at C, the MACD histogram is still rising, thus suggesting that the FBMACE is still picking up some strength. The improvement of the FBMACE is expected to carry on until the MACD histogram should form a Rounding Top.

In conclusion, despite the rebound, technical outlook for the FBMACE remains negative for the 14, 21, 31 EMA is still serving as the dynamic resistance. If the FBMACE should start falling after being resisted by the 14, 21, 31 EMA, it would form lower-highs.

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