Sunday, February 15, 2015

FKLI - The Market Goes  Holidaying - 2/16/2015

Displaying Oriental FKLI D.png 

The market continued to drift sideway with a false break on last Thursday when price broke down below its recent fractal low of 1770.50.  Though price recovered back upward with a following up action on the next day. It has triggered an initial sell signal with the Stochastic crossing down below its 80's signal line. So I would get ready to sell if price goes below 1766 again. I mentioned of a double tops formation in the previous week's essay, so the emphasis is still on the sell side over the buy.

Though the MACD has been turning around but it still remain positive. The Stochastic has turned negative and fallen below its 80's level. The DMI stays positive with the ADX falling to 20. So with the contradicting indicators and low and falling ADX, this is still a listless market. It is also due to oncoming Chinese New Year long holiday , most traders would have taken leave.

Displaying Oriental FKLI W.png 

The weekly chart is almost as per the previous week. Both the MACD and the Stochastic are still climbing. The MACD is relatively "far" from its zero signal line, so there is nothing to get too excited about yet. The Stochastic has just crossed above its 50's signal line which is usually interpreted as a more bullish sign than it crossing above the 20's line. So I would pay a bit more attention on this item. The DMI remains negative with the D- crossing above the 30's, this would mean the sellers are getting brave again. The D+ is still falling, so it would mean the buyers have been leaving.  The Japanese Candlestick has formed the 3rd black candlestick but their real body are not big enough to call it a "3 Black Crows" pattern, nevertheless it is still a bearish sign. So as like in the daily chart, more emphasis should be on the sell signal over the buy.

Due to the long holiday ahead, the market most probably would not do anything drastic yet.

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