Saturday, May 1, 2010

FKLI:- Stay aside and watch 2/5/2010


The Stochastic has crossed up but the MACD remains negative and the  ADX continues to fall and has now fallen below 20's.All these are classic signs of a sideway market. Another sign is that prices have been breaking above and below the upper and lower Bollinger Band but fails to follow through. 




Again at the weekly chart, a flat ADX is telling us the absence of trend in this market. The MACD remains weak but the Stochastic s still rising. But there is a telling sign here as the candlestick is a Doji Star which usually signal a reversal pending a confirmation with the next candlestick. Since this Doji Star appears at an area where the Stochastic is regarded as overbought, so next week should be interesting.

I would suggest you should keep out of this market for a while until we see some more concrete evidence of its next direction. Signs to keep an eye on should be: a rising ADX or the D+ or D- rising above its prior peak. As the Bollinger Band continues to tighten, you should be prepared for some major drastic action ahead.

As the bearish divergence is still intact, I continue to be bearish biased.

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