FKLI -25/5/09 - Take caution

Even though there were 4 sell signals blinking last week, I was not too sure about the end of the bull yet. At mid week price went back up and closed above the upper Bollinger Band which effectively stopped out your sell positions and reversed to buy again.

But same as last week, I am also NOT to convinced about this new upside move as the bearish divergences are still present. Most probably this would be the last push to the next target of 1,060 before the whole thing is over. Since the current signal is long, we shall follow suit but I would keep my stops tighter at 1,024 for the new long positions.


As far as the weekly chart is concerned, the bull is still intact as price stays above the upper Bollinger Band and the MACD stays positive and above its zero signal line.

In conclusion, unless the bearish divergence setup is erased, I remain extreme cautious with any new long positions. This is especially so as price is fast approaching the next upside target area.