FKLI - 13/4/09 - More explosive moves to follow ?

This market has been defying all the doom sayers and continue to rise further, again proving to us that fundamental analysis fails miserable in reading and predicting the market. The daily ADX has now risen to 25 which is confirming to us there is a trend now in this market and since it is still rising, that we can say this trend is still intact. The daily MACD is staying above the zero signal line which effectively confirming the bull. Though the Stochastic is now reading 92's which some people would call it "overbought", but I would not pay too much attention to this indicator now as the ADX is in control and instead we should pay closer attention to the MACD. Oscillator indicators like Stochastic, MFI, RSI,W% etc can remain 'overbought' for weeks and months and prices will just keep going higher and higher.

The weekly chart is also confirming the current bullish mode. Price has closed above the top Bollinger Band and did higher than the previous week's high. Both the MACD and the Stochastic remain positive and continue to rise. When both indicators are in "agreement' , usually the trend is more reliable. Since the Stochastic has crossed over its own 50 signal line , we shall take that as a new buy signal. And when the MACD crosses above its own zero signal line, that shall become the next buy signal.

As I have alerted you all that since the Bollinger Band has been squeezing for some weeks, any eventual breakout wold be of the explosive and powerful kind. I think we may just be witnessing the beginning of a big one.

I would place my stop at 915 just in case this rally fails and set my upside targets at 974, 1,084 and 1168.