FKLI - Technical Rebound Continues -3/4/2013



The new buy signal was fulfilled on lat Monday when it went above the signal day high of 1612.50. I place my stop below the bottom band initially and has now moved it up to th middle band minus 2 points. If the market can continue to move up further, then I will push up my stop to the top band minus 2 points.
The Stochastic and MACD are positive and rising. The negative DMI continues to improve as the D- is fast falling and D+ is going up. The ADX is finally falling from above the DMI, this is telling us the prior bearish trend has ended for now. As long as price can maintain above the middle/top band, the current technical rebound would stay intact.


 The weekly chart's indicators are still negative as the Stochastic and MACD are still falling. Though the ADX is still rising, it is below the 20's level. So we still do not see a new trend yet. The only "bright" spot for the bulls would be the Japanese Candlestick. Last week I forewarned of a long legged Doji that stopped and rebounded from the twice tested support level of 1600's as it may be a reversal signal. This week the Candlestick is a white body (close is higher than open) and it managed to closed above the Doji's high. according to some Japanese Candlestick trading methodology, they would be very happy about this formation. But I personally would rather wait for the coming week to provide another white body Candlestick that prefebly break above the middle band. Of course always bear in mind that we are NOT trading this weekly chart, this chart is enabling us to look at the bigger picture. and at this moment, it is not yet confirming the return of the bulls/death of the bears. At best, it is still a sideway market.
We are having a minor technical rebound at the daily chart but still having a sideway market at the weekly chart. Watch 1638 and 1650 for resistances for the coming week.