FKLI - Market May Be Yawning But You Must Not Fall Asleep - 4/9/2012

 


It is still a listless market for FKLI. It went for a new high and then broke down again. I closed off my long positions when price went below prior day low on Wednesday. I was preparing to engage new shorts on Thursday when price went below the top band with the Stochastic turned negative. But Friday's prices had failed to follow through a lower low, so I am on the sideline now.

I would engage new short when if price goes to 1589. But then I take note that the ADX has gone falling again, it has now reached 17's. With such scenario,  I am actually quite reluctant to get  into the market. It looks like both the Stochastic and MACD may hook up again, so I would not be surprise if this market edges up again in the coming week.


 
At the weekly chart, I would continue to pay attention to the Stochastic as the ADX is low at 16's and flat. I also would pay attention to the price, if it goes below the prior week's low of 1583, then this stale bull would likely get into trouble. So far the positive MACD and DMI are still supporting prices. So the market may not be collapsing so soon.

Traditionally when the penny stocks rip and roar as what is happening now, it is usually a sign that the big market has entered into its final phase of its bull cycle. I would advocate try to get a seat next to the nearest exits and windows so as when someone shout "fire", you can leave the scene swiftly. Even the current rampant speculations in the property market is worrisome, these are sign of maddening bubble in formation.