FKLI:- Bull Is Still Healthy Though Minor Retracement Expected - 20/9/2010

The market did not take any retracement but instead continue to climb further. Again there is no alarming signals to warn us of big trouble ahead. Place stop at 1454.

As the ADX continues to surge and the MACD is still pointing up, both indicating the market is still in a strong uptrend. This is especially so when the ADX is now at 46. The Stochastic has just turned down , as long as it stays above 80's , the bull is still ok. But once it goes below the 80's and prices go below the upper Bollinger Band, I may want to try out some shorts positions. But it will be counter trend, so I would keep the bets small.





The weekly chart continues to support the daily chart's bull as prices stay above the upper Bollinger Band while MACD is still rising. The most assuring of all is the ADX which continue its rises. This is reassuring the current uptrend.

It seems that there is little to stop this market from testing its last high of 1536 hit on mid January, 2008. Recently some 'experts" claimed that KLSE may has begun its new era of bull cycle that could see us beyond 2,000's+. I would NOT get too carried away yet as the bearish divergence at the weekly chart remain intact. Unless it is erased, do not let those too early assumptions mess up your mind. At this junction, we seem to be near or already at  major terminal points for several major currencies like Japanese Yen and Swiss Francs. Both currencies involved their respective central bank's massive intervention, it would interesting to see how this turnaround would affect the Chinese and our market.