Friday, April 10, 2015

FKLI - Can The Uptrend Stays ? - 4/6/2015

Displaying Oriental FKLI D.png 

The market made another break up above the top band on last Monday. The move was impressive as it gained a 16.5 points in a day. All the indicators were in agreement. I have been reluctant to enter a new buy trade as the ADX has been falling and it is at a lowly place. Of course now this turns out to be a mistake as price continues to move higher. Over the years of my trading history, I still continue to make such "mistake". In such situation, I would NOT rush in but instead I would patiently wait for another buy signal to enter. But in the current case, I am still NOT very impressed by this move as the Stochastic is already inside the overbought zone (the ADX is still low and flat, so the Stochastic matters more than other indicators). Instead I am more inclined to wait for the next sell signal.

As the DMI continues to wiggle and the ADX at extreme low and stays flat, I am still calling the current market of little direction.

Displaying Oriental FKLI W.png 

The weekly chart is turning more bullish biased as price has now closed above the top band. The MACD stays positive and continues to rise. It is about to go back above its zero signal line which may promise more upside to come. The Stochastic has already entered into the overbought zone. As the ADX is still falling and it is now below the 20's, so I would pay more  attention to it over the MACD and DMI. The DMI stays negative with the D- continues to fall, this means the sellers are leaving. The D+ is rising which indicate the buyers are getting brave. So maybe  some respect should be paid to the bull ? But with the falling and lowly ADX, it is hard to think such at this moment.

Displaying Oriental FKLI M.png 

At the monthly chart, price continues to improve as it managed to close above the middle band. But the MACD and Stochastic have failed to offer any confirmation as both of them remain negative and continue to fall. The DMI stays negative with the ADX flat, so this is still a sideway market. Since this is a long term chart, I would need to see the Stochastic turning positive again before I rethink on my current bearish opinion on the market.

As crude oil seems to preparing for a major reversal next, FKLI may get some encouragement. But unless the current established bearish divergences are erased, I remain unimpressed with any retracement.

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