FKLI - A New Bullish Cycle ? - 3/6/2012

Again the market flipped and my last shorts got closed off on last Wednesday when price broke above the top band. And again I have to engage new buy when the Stochastic turned positive to support the new buy signal. Now that we finally see the ADX rises, we may begin to a new trend in this market. Please take note that the MACD has also turned positive on last Friday. So for the moment , all things seem to be pointing for another buy cycle.

Of course we may have no way to determine whether this cycle would be a longer term one or it would just another flash in the pan. I would place a stop at 1570 or prior day low minus 2. But the rising ADX seems to be about to go above 20's , this is indicating a new trend in making. This is adding strength to the new bulls opinion.


The weekly chart's MACD continues to rise and the Stochastic has turned positive again as prices surge higher. But the ADX stays flat so I do not want to get too excited yet. But the weekly chart is supporting the daily chart's buy signal. What is getting interesting now would be if the market can break out above the previous high of 1598.