FKLI :- Is Everybody Waiting For Something To Happen Soon? - 2/6/2012

As it always happen in a listless market, many false breakouts occur. First we had a 21 points breakdown, then it reversed and went on to break up above the top band. All these happened while the ADX falls further. As at now, we have another buy signal with a positive Stochastic and closing above the upper band. Is this the beginning of a new trend ? With the flat ADX at 9's, nobody can say for sure. I would just take the trade and keep 1520 as stop - that is sticking to my trading system and leave the rest to "higher authority".





The weekly chart stays vague as the MACD is still rising but the Stochastic has turned the corner and crosses down. Prices after a false breakdown below the upper band intraweek but managed to close back up. The ADX continues to fall and now has reached 20's. Conclusion:- it is still a listless market and I would watch out for a Stochastic crossing down its 80's signal line.

The current strategy would be just trade the shortest term. Take profit whenever possible. That would the best approach to trading when the ADX is super low. The 2nd best would be just stay out of  the market. I think everyone is waiting for an election announcement . I mean it certainly does not make any sense when ah Jib koh has been passing out so much cash if he does not intend to call the election soon.