FKLI:- Get Read To Sell Again -19/7/2010

As I mentioned last week, the lowly flat ADX situation usually make trading difficult. Last Tuesday, the market went to test a low of 1324 again took out my stop. I went back in buy again the next day but again was stopped out again with price went below the upper Bollinger Band on Friday. So there is why sometime it is better to stand aside for a while to watch out for some stronger signal.

The current picture is that the ADX is still staying flat and at a lowly 14's. The Stochastic has gone overbought and seems to be turning. The MACD continues to rising and stay positive. Prices seem to be testing the 1350's areas but has been unable to break above it.

The weekly chart remains as uncertain as last week's. The Stochastic continues to rise but the MACD remains negative. The worst is that the ADX has now gone below the 20's signal line which is really telling us that there is absolutely no trend in this market.

I have drawn a horizontal line marking the D- recent peak on the daily chart, I would re-enter the market when this peak is taken out by either a rising D+ or D-. But if you want to continue to trade this market with minor signals, then I would recommend you stick to the Stochastic cross down as the next sell signal.

Of course the big picture remains dominantly bearish. So you should pay more attention to the sell signal over the buy signals.