Monday, September 29, 2014

FKLI - Market Still Go Nowhere But Something Is Brewing - 9/29/2014

I went back to sell again as price went below the prior day low on last Monday. So far, the trade is not going anywhere as price is still hugging below the bottom band. All the 3 indicators remain negative. The MACD looks like it is struggling to turn around. The Stochastic has now gone below the 20's signal line. The ADX continues to ascend but there does not seem to be a strong trend in the market yet. The 1832 support level has been broken down below a few times, but market always was able to close back up above that level. In order to protect my shorts position, I am placing my stop at above 1841.50.
Though all the 3 indicators remain negative and continue to fall,  and price remains below the bottom band. All these add more weight to the bear but the 1832 support level is still holding.  The ADX continues to stay flat at 14's, this explains the current lack of direction in the market.
As mentioned last week, the bigger picture remains bearish as ever because of the presence of bearish divergences. But the daily chart seems to hinting for something else. The daily RSI has now gone into the oversold area and the MACD has already registered a higher trough and it has been turning around. So we may see a reversal next when price can go back up above the bottom band with backing from the indicators. Maybe someone want to bring affirmations to the market after our PM had spoken to the US funds big boys.

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