FKLI - Stay With The Bull 18/1/2010

Everything still look alright at the daily chart as the MACD remains positive and still rising. The Stochastic stays above the 80's signal line and has just done another crossing up. The most assuring item is of course, the rising ADX  which has now gone above the 20's signal line confirming a strong tend is in place.
Place stop at1294.

 

The weekly chart is also strengthening as the ADX has started to rise again which is confirming the beginning of a new trend. Price has managed to stayed above the upper Bollinger Band which is bullish. The Stochastic has crossed up again through the 80's zone. MACD is turning the corner but it is still negative.

I think the market is allowing the penny stocks/2nd and 3rd liners/ BS stocks to play out their bull rally before calling it a day. A word of caution here is that I think both the weekly indicators may be on their way to form their first bearish divergence on the weekly chart. This is usually a necessary formation before the market will really come to an end of its current cycle. So we would have to be more alert the next time prices go below the upper Bollinger Band as it may be the beginning of the end for FKLI. This is especially so since there are already multi period bearish divergences at the daily chart.