FKLI - More Drifting For Now But    Watch Out For Storm Ahead - 1/30/2012

Same as last week's reading:- positive Stochastic and negative MACD, flat ADX at 10's and a wiggling DMI, all confirming a listless market. Now that even the Bollinger Band has begun to squeeze with prices stuck within the band. I would NOT trade this market at this moment but I would pay close attention as some explosive move should be coming soon across the horizon.
Though theoretically the next explosive move could be of either direction, but I take note the presence of a bearish divergence at the indicators, so I would be more inclined to bet on the sell side. 
 

The weekly chart's Stochastic and MACD continue to rise. But as the ADX continues to fall which is confirming the lack of trend in this market. I would pay attention to a possible reversal of the Stochastic. Its crossing below the 80's level accompanied with a price closing below the top band will offer a new sell signal.

And because of more holidays in the coming weeks, so I think the market should continue to drift before the real action kicks in. Fundamental news that came out recently that warrant your attention would be the great number of credit cards reduced but the amount owed still continue to rise. Also the Bank Negara's new rulings on car HP limits. And I have been wondering when the Bank Negara is going to pour some cold water over the vision impaired property bulls. Though the top politicians and officialdom keep on telling us that we should not worry too much about the EU crisis, but if you pay attention at what they have been doing, you would know - yes, we should be worried.