FKLI:- Conflicting Signals - Watch and Wait -12/6/2010

I would like to start with the weekly chart again. The MACD has finally crossed down and the Stochastic is about to cross down its 80's signal line. But price managed to closed back above the upper Bollinger Band. This is a conflicting signals. This is reinforced by the falling ADX. Please take note that the D+ has been falling indicating the bull is losing strength.

 

The daily chart is also as indecisive as the weekly's. Firstly the ADX has started to fall again, indicating there is not much trend in the market. But the Stochastic has turned positive again and price went back above the bottom Bollinger Band. The MACD has stopped falling and is turning upward again. So if you are still holding shorts positions , maybe you should close them off at the market. I would try a smallish buy when price closes above the upper Bollinger Band with the Stochastic crossing above its 50's signal line. If done,. place stop at 1495.

I would not want to commit large positions yet as both the daily and weekly charts seem to be pointing to a listless market. I think the market is not sure what they want to do because  there are both bullish and bearish news breaking practically everyday. There were a lot of expectations that the Euroland crisis may spread towards Spain soon. But last week their bonds was well received by the market which seems to be saying that the investors are still holding confidence in their economy. So maybe the show will be postponed by another week ?

But at this junction, maybe we should also hold our breath and watch for a while before committing money to the market again.