FKLI - 6/4/09 market clebrates Najib ?

Last week my stop of 878 was hit on Monday when price went to a low of 864. And the newly established shorts when prices cross below the upper Bollinger Band together with the Stochastic crossing down from the 80's level. But the new shorts was a short lived one as prices crossed up again the upper Bollinger Band on Wednesday's closing so we would have re-established a new long contract.

The Stochastic has turned positive again and the MACD has finally crossed up above its own zero signal line which is usually a more powerful bullish confirmation. But the most promising item in the current reading would be the rising ADX which has just crossed up the falling D- which is usually another powerful buy signal. But having all these bullish confirmation from the indicators, I would still prefer that we can have a daily closing of above 914 which has been its recent high and therefore has become a resistance.

The weekly chart has finally become clearer as the Stochastic has already crossed up which is complimentary to the positive and still rising MACD. And prices has already broken up above the upper Bollinger Band which could be taken as an initial buy signal. As the Bollinger Band has been tightening , this breakout could be the taken as a forerunner of a major explosive bull run. BUT as there is no bullish divergence found in this weekly chart and the MACD still remain far from its zero signal line, I think we should remain cautious at this moment and do not get carried away by the new Prime Minister and the illusions of his new regime can change our economic structure overnight.

We shall place our stop at 888 just in case the market turns back down again.