FKLI - Ignore the "recovery" hype 15/3/2010

The last trading days saw FKLI falling 17 points. The Stochastic has turned negative and look like about to cross down its 80's signal line. I would place stop at 1308. But since the MACD is still positive and the ADX has not stop rising, the current bullish trend may not has ended yet. With this I would be a little cautious on any shorts.

The weekly chart continues to be less confirming. The Stochastic continues to rise and now has crossed over its 50's signal line which is usually more bullish. But the MACD remains negative though it is struggling to hook up. So we are getting a classic 2 indicators which does not agree with each other. And that usually mean the market is caught in a range bound situation. The weekly ADX has stopped falling and went flat which may be another sign  that  this market is lacked of any  directional move.

The weekly chart may be developing into another extreme bearish scenario as price breaks up higher but the MACD is unable to follow. So the strategy remains as last week's:- stay long , keep stop tight and do not get carried away by all the 'recovery' stories.