Sunday, August 11, 2013

FKLI - Will Market Follow Through With Selling ? - 8/12/2013



As expected the market did not go anyway due to the short trading week and long holiday. Price just hugged along the bottom band for the past few days. Both the Stochastic and MACD stay negative. The DMI has been wiggling with the ADX falling to the 20's level. The wiggling ADX and low ADX is confirming the current listless market mode. But breaking below 1771 should see more sellers coming out.

I am tightening my stop at above the middle band.


The weekly chart's Stochastic has already turned negative and price has stayed below the top band. This is giving out an initial sell signal. If I am trading the weekly chart, I would sell below 1774 in the coming week. The MACD is turning downward and it may turn negative. The ADX is now above the DMI which is a sign that the market is overbought. The flat ADX means that the prior trend has ended, at least for the time being.

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