Monday, March 9, 2015

FKLI -  Here Comes Another Sell Signal -3/9/2015

Displaying Oriental FKLI D.png 

A new sell signal finally came on last Thursday when price closed below the middle band with the Stochastic crossing below the 80's signal line. The sell signal passed test the filter when price went lower than the signal day low. The MACD has turned negative but it remains above the zero line. As the D+ falling and the D- rising, the DMI has reached an equilibrium point as at last Friday. It should turn negative by the coming week.  But the ADX has fallen below the 20's signal line, so this may be listless market again.

I will place my stop at above the middle band and if price continues to fall, then I will adjust my stop to above the bottom band.

I would like to bring your attention to another new bearish divergence has been formed. So it is still the same story as I have been telling here - watch out for a possible dramatic sell off next.

Displaying Oriental FKLI W.png 

The weekly chart remains listless as the ADX continues to fall ti 20's now. The D- is rising again which mean the sellers are getting adventurous. The D+ is falling and that means the buyers are leaving. Both the Stochastic and MACD remain positive but the Stochastic has already tilted its head, so we may see it turning negative by the coming week. Summarily the weekly chart is still of a listless mode, I would need to see price fall below the middle band in order  to determine a new direction.

The game plan remains same:- pay more attention to the sell signals over the buy. I hold firmly to my belief that Mr. Big will soon lose control of the script soon and FKLI will have to fall like a rock. Be prepared.

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