FKLI:- Is The Market Waiting For Soemthing Big ? 12-27-2010

The lower Bollinger Band provided a good support, market went to test that level again on last Monday, then did a strong rebound on Tuesday which took out my stop. You can make a new bets on the long side as price closed above the upper Bollinger Band which was complimented by a Stochastic cross up. As the ADX now has fallen below the 20's and the D+ and D- seem to be wriggling with each other,   the trend is  is officially dead. So if you decide to step aside , it is perfectly alright.

I have drawn 2 parallel lines to mark out the current range. I would need to see prices moving out these 2 levels for the emergence of a new trend.


The weekly chart is not yet showing any great sell signal. For the bears, both the Stochastic and MACD stay negative and continue to fall. But price again managed to closed above the upper Bollinger Band and  the D+ is still above the D-. These 2 are on the side of the bull. I take note that the Bollinger Band has begun to "squeeze" and with the flat ADX , both are telling us there is no trend in this market.

Due to the year end holidays, most markets have been flat last week. It seems to me that everybody is waiting for something big to happen.