FKLI - Creeping Up But Can It Sustain ? - 1/2/2012

Despite the last few unprofitable trade due to the trendless market, I kept to my trading plan and went in to buy the market again. So far this "sticking to the trading plan" is working out just fine. Though with no strong strength, the market still managed to creep upward. 





Price stays firmly above the top band with the Stochastic ,MACD and DMI stay positive. Even the ADX has begun to rise which is indicating the market may be forming a new trend soon. But as Stochastic is already inside the overbought zone, I would keep my stop tight. The prior day low minus 2 should be prudent.

 

The weekly chart's indicators continued to stay positive and move upward. Price maintains above the upper Bollinger Band and also above the recent fractal high. I also take note that the MACD is coming near its zero signal line, both are  usually more bullish. The DMI has gone into equilibrium which the D+ and D- equals to each other. As the ADX is still falling, so I would keep an eye on the Stochastic which has now gone into the overbought zone. Another reason to keep the stop tight in the daily chart.

The American economy continues to spring pleasant surprise here and there and suddenly  talks have started everywhere saying how the US Dollars has become the "safe haven". With the next US Presidential Election coming on, US market may spring more surprises which may affect many of us. But our cash market ended up 20+ points on the last trading day is just so ridiculous.