FKLI - Retracement on its way ? - 10/8/09

The market has been losing its momentum since two weeks ago. The MACD has now dipping its head and the ADX has been above both the D+ and D- which is confirming to us that an overbought scenario. But then there has been no selling signal yet as 1156 was not breached last week. You should keep your stop at 1168. You may even try to sell some at 1165, but since the chart has no major sell signal yet, you should keep your stop tight at 1183.

The weekly chart continues its bullishness with its MACD still rising and price maintain above the upper Bollinger Band. The most significant item of them all is the rising ADX which is confirming the continuation of the bull trend.

Since the weekly chart remains strong, so we should remain bullish bias. But then the daily chart is deteriorating, so it may be prudent to expect some retracement or consolidation in the short term.