Saturday, November 9, 2013

FKLI - Retracement Continues - 11/11/2013

The market continues to go down with MACD gone negative and the Stochastic crossing down its 50's level. The DMI is neutral as both D+ and D- are at 20's.The bottom band has provided some support for now, if price can go below that level, most probably we will see more aggressive selling coming out. The ADX has been falling and it may go below the 20's level. This is confirming the end of prior trend and it is now not having any major trend yet.

Watch 1761 for the next support level. I am placing my stop at the middle band of 1806.

The weekly chart is getting more precarious for the bull. As the ADX staying flat at 19's, so it is the Stochastic that should be watched. It has now entered the overbought zone, so I have to take caution that it may begin to turn down. The MACD remains positive but it looks like it may be turning the corner as it has begun to dip its head. The DMI also stayed positive but the ADX stays flat at 19's, so there is no new trend yet. But an initial warning of selling is already here as price has closed below the top band.

Standard & Poor finally downgraded France from AA+ to AA. This has been widely expected for some time now. I have been wondering when is our country due for the next downgrade. We share with France on many values on "protected species".

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