FKLI:- More Whipsaws ?- 5/30/2011

 

Last Monday the market took out my previous long position when price took out the prior day's low minus 1 point. But I did not enter any new shorts as Tuesday price did not confirm Monday's sell (price did not go below upper Bollinger Band when Stochastic crossed down) Instead I went back to buy on Friday when price went back up above upper Bollinger Band and the Stochastic turned positive again.

Though  price seems to be breaking out and up above its recent range and the MACD has also turned positive again, but the ADX continues to stay flat at 11's, so I expect this trade be another short term trade at this moment.

 

Though the weekly chart's Stochastic and MACD continue to contradict each other, price has managed to closed above the upper Bollinger Band. This may be hinting that the market may be testing the upside again. But again the ADX continues to stay flat at 10's which is discouraging the bulls from getting too excited.

I continue to stay alert for the next possible explosive move.