FKLI:- The Bears Attack - 8/29/2011

I have got the confirmation to sell again on last Monday when Stochastic turned negative and price closed below the lower Bollinger Band. But I only manage to get to enter the actual trade on Wednesday when price went below Monday's signal day low. By then, we have all the indicators gone negative, price went below the bottom Bollinger Band and most important of all is that the ADX has begun to rise again.

Place stop at 1463 or 2 days high plus 2 points.

 

The weekly chart just gone more bearish as the Stochastic has crossed below its 50's signal line and the MACD crossed down its zero signal line. Both are confirming a more solid bearish market. Prices remain below the bottom Bollinger Band which is also a bearish confirmation. The weekly ADX continues to rise confirming the current sell trend is intact.

This week is crucial as the month is coming to an end. The closing price will make or break the monthly chart as discussed here last week. If price closes below its recent fractal point and the upper Bollinger Band, together with a negative MACD and Stochastic, they could be the beginning of the end for this market. Personally with the long holiday coming on, I am very doubtful the market will be able to close back up in a strong manner.

Our equities market once again show another kisah benar to us that no matter how "strong" a company's fundamentals are, during a panicky market situation, these counters shares will still get dump off too. How CIMB shares price sunk last week is a perfect example.Meanwhile both the DJIA and USD seem to be getting ready for something big to happen. You should keep an eye on both of them in the coming week. For any drastic move by them would bring fore new directions in EUland market and their currencies.