Sunday, February 12, 2012

 FKLI - Continue To Trade Short Term - 2/13/2012



Prices went higher last week. Though the ADX has begun to rise, it is still at a lowly 12's. So I continue to keep an eye on the Stochastic which has now gone into the overbought area. I would start to keep a tighter stop to protect my profit. Lows of 2 days ago would be a good place for the beginning of the coming week, then I would further tighten the stop to prior day's low minus 1-2 .

This market offers nothing to shout about for the bulls and the previous established bearish divergence is still intact. So my trading mentality is still bearish biased. But nevertheless, I continue to place trades base on the latest swing.



The weekly chart ADX continues to fall indicating there is little or no trend in the market. The MACD stays positive while prices stay firmly above the top Bollinger Band. With these, traders should keep on the buy side of the market. But the Stochastic has already turned negative and in the overbought zone, so traders should stay cautious and be ready to close off buy positions.

The game plan remains the same as last week - trade short term only as both  the daily and weekly ADX is low. You should always ready to take profit at the soonest. Keep doing this until a new trend emerges.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.