FKLI 4/5/09 - Consolidation ?

The market did a retracement and hit our stops at 971, so we would had taken out our long positions. But we would have gone back and bought at 979 when prices went back up and closed above the Bollinger Band.

The MACD has now tightened up and may just crossed down if price is unable to go further up. The ADX has also go flatten which is telling us the prior trend has stalled, at least for this moment. The Stochastic has also crossed down its 80 signal line. All these are telling us to be cautious.


There is still nothing in the weekly chart to warn us of any impending return of the bear. With prices still stay above the Bollinger Band top and both the MACD and the Stochastic still continue to rise. With the MACD is fast approaching its own zero signal line which is usually a more bullish buy signal.

So at this moment I would keep a stop at 978 just in case the market is doing a retracement or a consolidation. And I will add on more position if it closes above its recent high of 1003.