FKLI:- Will Our Market's resistance Be Futile ?- 6/13/2011

 

 
The ADX has been staying flat at 13's ,so we are seeing another week of prices going nowhere. As the Stochastic is negative and prices stays below the upper Bollinger Band, I have engaged a new shorts.  1546 level has been tested twice over the week, so I would watch that as a support. If price goes below there, I would add on more shorts. I am also paying attention to the MACD which is still positive now but it is already turning its head, it will be another signal to sell further.

The weekly chart Stochastic has approached the overbought zone as the MACD's turnaround has begun to stalled. The ADX stays flat at 10's and the DMI continues its wriggling. All of these are pointing at a listless market. By the coming week, I would be looking out for a possible new sell signal when if the Stochastic turns around or when if price crosses down the upper Bollinger Band.

One item to pay attention here is that price has reached a new high of 1568 last week compare to the high of 1562 hit on 8/4/2011. If the MACD comes back down and crosses down again, it would mean another bearish divergence will be formed.

The local market is so like our national political motto of "Malaysia Boleh", in face of the DJIA recent price collapse, our market is still able to hold up. Regardless I continue to place more weight  on the bearish side.