FKLI:- It Just Get Hotter - 8/30/2010

The daily chart ADX continues to rise which is confirming the current trend in the market. Since it has reached a30's, the "overbought " Stochastic would have little meaning, but instead I would keep an eye on the MACD as the next quit signal. Place stop at 1395.
 


As mentioned last week, the previous bearish divergence has already been erased, so we may have more top side to go. I would start worrying again until I next see a new divergence formed.

The weekly chart's MACD continues to rise while the Stochastic stays over bought. Unlike the daily chart where the ADX is high, the weekly ADX remains flat and it is below 20's.So I would keep an eye on the Stochastic . And the bearish divergence remains which warrant us as NOT to get overly bullish.

FKLI has now gone into the area where are little resistance, the next level to watch would be at 1458 or its historical high of 1536.