FKLI:- More Range Bounding -10/25/2010

 
As I noted last week, prices  would not go any major direction yet as ADX continues to fall. Though the Stochastic did crossed down below 80's , but the market immediately took out my stop on last Wednesday. I did not re-enter any long position because both the Stochastic and MACD did not confirm.  As the MACD  stays negative and continues to fall, I would rather wait for the next new sell signal to get back in again. One such signal would be if the coming Monday's prices go below 1486, I would re-engage new sell position. If done, place stop at 1499. But if we do get another breakup with Stochastic or MACD crossing up again, I would buy if the prior high of 1501 is taken out.

 
 
The weekly chart again favors the bulls over the bears. The MACD continues to rise , prices stay above the upper Bollinger Band, D+ is above the D- and the Stochastic still manage to hold above the 80's. Most attractive is that the ADX is still rising. So I cannot see any sell sign here yet.

As like last week, since the ADX is still falling, I think the market may just continue to range bound. The last few days  we have got some big boy coming out to say that the KLSE may be at the beginning of a new big bull cycle and then another big boy noted "共有62%的股項依然以低於帳面價值交易". I don't know about that, but with the USD seems to be turning the corner, you should be cautious that flow of money may change soon.