FKLI:- Everybody Start Talking Of A CNY Rally ! - 1/17/2011

The market failed to move further up but just play consolidation. Raise stop to 1564.

The MACD remains positive but the Stochastic has turned negative and started falling. I will watch out for if it crosses down its 80's signal line and price goes below the upper Bollinger Band as an initial sell signal.  The ADX has turned flat which may signaling more range bounding to come.

                   

The bull in the weekly chart is still intact as both the ADX, Stochastic and MACD continue to rise . Since the Stochastic has gone above its 80's zone, I would keep an eye for any crossing down below the 80's signal line which may be taken as an early reversal signal.

I have not been too bullish about the FKLI lately. As another new high formed recently, any hooking down by the indicators would mean a new bearish divergence formed. At this mature age of the FKLI bull cycle, I strongly suggest you should NOT get too carried away by the recent market bullish talks. History teaches us whenever the local experts go super bullish , that is usually the time you should taking profit and go take a holiday. (see KCPO  for one of those kisah benar story)