FKLI:- One More Round Before Hitting The Road ?- 2/21/2011

 
The market has failed to carry through the prior down move and instead it triggered my stop on last Tuesday. Price has now closed above the lower Bollinger Band and that is complimented by a positive Stochastic.   Though the overall bigger picture may remains bearish, but I notice that the ADX has turned flat and that is telling me that the prior down move may has stalled. I have now turned buy. Please also take note the trendline resistance has also been broken up.

Place stop at 1500.

                               
                       


The weekly chart remains bearish as both the Stochastic and MACD stay negative and continue to fall. Take note that the Stochastic has now fallen through its 50 signal line which is a more bearish signal. But last week we could not have further confirmation as price went back and closed above the middle band which is the 20 periods moving average. And we did not get a closing of below the lower band. The weekly ADX continues to fall to 21's, if it fells under the 20's, the market may get stuck in another range.

The market may be acting up as in the previous few occasions where it just refuse to "die". I would trade the long side on the short term but I remain bearish on the longer term. The great Euroland financial crisis specter is still around, news of Portugal may be falling soon has begun to crept out the last few days, this is something that is not too encouraging for the equities markets.