Saturday, November 14, 2009

FKLI - It is getting more perilous -16/11/09




Lat week's prices may just touched my stop and bounced , even though you may not have closed off the positions, I would think you should do it when market opens in the coming week.

The Stochastic is now turning negative and downward. The MACD is also seem to be losing steam though it is still positive. The ADX has turned flat for the past days which may be signaling a sideway market. I would sell when market closes below 1268 and add more at 1245. Place your stop at 1273.




The weekly chart again remain almost same as last week's. Price is still maintaining above the upper Bollinger Band and the Stochastic remains above its 80's signal line. The MACD may still positive but it is losing more steam, which mean we may see a negative cross down soon.

Summary:- the daily chart is getting more hideous as another new negative divergence may be forming
when if the MACD crosses down soon. With this multiple bearish divergence hanging over this market, it is hard to tell yourself everything is okay and that we can live happily ever after and other rosy stuffs. Of course we may still see the market go for its next upside target as the weekly chart is still healthy, but I think we need to see some meaningful corrections first.

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