FKLI - Will This Market Do Another Pushing Up ? - 6/25/2012

If by following my trading method, I would had bought again on last Tuesday when the Stochastic finally turned positive and support price above top band signal. And then I would have closed off the position when price opened below the prior day low. Another  one of those no way trades that either you lose a bit or win a bit.  Please take note that the ADX after rising for a few days but it has gone flat again at 19's, a condition that I would pay more attention to the Stochastic over the MACD. The Stochastic has now gone into the overbought zone, so I will be very reluctant to go long again, but rather I would look for a new shorts opportunity. I will sell when price goes below the top band with a negative Stochastic crossing down its 80's. But if I ever want to buy in again, I would need to see solid closing of above 1606 to have some evidence of strength or I would buy if price goes above the weekly chart's high of 1613.



The weekly chart is different from the daily's as it seems to turning a bit more bullish than last week. Price has broken out and closed above the top band. Together with a positive and rising Stochastic, this presents as a buy signal. The MACD may still be negative but it has begun to turn around. I  note that the ADX has stopped falling and turn flat , this could be a prelude to a new cycle change. And I also take note that the Bollinger Band has began to expand. So I ponder could this be the beginning of an explosive move.

So we are having a not too impressive daily chart (overbought) but an increasing promising weekly chart (breakout above top band) . Since the weekly chart is always the dominating force, so I would place some faith on the buy side for the time being but I do not want to be carried away. Keep this mind:- the EU crisis is still far from over. Spain's economy is twice the size of Greece, Portugal, and Ireland combined. Yeah, this is a real big one. The next episode is already beginning to come on stage , and that would be Italy. Even I would expect this to happen at a  later date, but already the latest statistics has begun to show cracks at the Germany's economy. And that is really going to be a nasty one if they fall too. Despite what our  politicians and Bank Negara have been saying that the EU crisis would not hamper us a lot, my thinking is that their contagion will hit us soon and it is going to be a times worst than the 1998's crisis.