FKLI - Waiting for more solid signals 22/2/2010

The buying that came on the first trading day after the CNY holiday and saw the market closed higher. But the next 2 days failed to hold and instead prices drifted lower. The Stochastic continues to rise but the MACD has so far failed to turn positive. If the Stochastic is able to break above its 50's signal line, then we may be able to see some strength for the bull. The ADX has turned flat indicating there is no trend in the market. The D- is still dominating over the D+ which is telling us that the bear is still around. 

Place stop at 1240. If price is able to close above 1263, then maybe we would see a short term bull. But if it closes below 1240, there is a strong possibility that the bear may jump back and flashes its claws again.


At the weekly chart both the Stochastic and MACD remain negative and are still falling. This is indicating a more bearish bias. But price maintains inside the Bollinger Band and a falling ADX, there are no trend in the market. And there is also a wiggling D+ and D- which is also another classic sign of a trendless market. The smallish real body candlesticks for the past 2 weeks is another confirmation of the above.

So at the moment, both the daily and weekly charts are telling us there is no trend in the market so we just have to wait for some flesh signals to emerge before deciding on our next course of decisions. But with weekly chart's indicators falling, I would rather stay more bearish inclined than otherwise.