FKLI:- Something Very Big May Be Across The Horizon ! 5/2/2011

The ADX just got increasing hideous as it slides further down to 10's. The Bollinger Band is also getting tighter. All confirmations of a sideway market. The Stochastic is positive and rising while the MACD seems to be turning around.

But with lowly ADX, false breakups or breakdowns should be expected. So if you are to engage into position trading, keep the size small. Meanwhile watch the 2 horizontal lines that I drawn out last week for possible new direction.

The weekly chart also confirms the daily chart's lack of direction. Its ADX has also been falling and it is now at 13's. Prices stay inside both the top and bottom band. The Stochastic is positive and rising while the MACD is still negative and falling. These 2 indicators contradict each other, another classic sign of a listless market. You should also take note of the squeezing Bollinger Band.

Both daily and weekly chart ADX is way below the 20's level and the Bollinger Band has been tightening. I would really start paying some serious attention from now onward. This is the classic signs that something really BIG may be just across the horizon. At the moment it is difficult to tell which direction will the next big move will be, I just to have to wait for 1-2 weeks to form a new opinion.