FKLI:- Caught In Another Range Before Collapsing Again ? -2/8/2011

The market may consolidate here for a while before continuing with its prior trend. I would only buy again when price can close above the lower Bollinger Band with a positive Stochastic. But I would only take this as a temporary counter trend trade as the dominating trend is still bearish as the MACD stays negative and it is below zero signal line.

But as the ADX has turned flat and both the Stochastic and MACD contradicting each other,  the market may has just turned range bound.




The weekly chart remains bearish as both the Stochastic and MACD continue to fall. But 1501.50 seems to be a strong support spot as price reversed from there last week. But price remains within the Bollinger Band. Any closing of above 1538 may negate the current bearish analysis , at least on a short term. But any breach below 1501 will signal continuance of selling.

As the US Dollars may be turning for another bullish push again soon and this time it MAY mean hot monies may be leaving some so called emerging markets and returning to US. So you should be extra cautious.