FKLI - A Correction Across The Horizon ? - 7/23/2012

 

I went back in and bought as price went above 1630 on last Monday and came out on Friday when price went below prior day's low. I did not do any new trade as price is still above the top band and all the indicators stay positive. I would re-engage new long if  price goes above 1652 and yes, again will keep my stop tight. I take note that the Stochastic has formed a minor bearish divergence. So be cautious of a short term weakness.

As long as the ADX keeps rising, the current trend will stay intact.

 
The weekly chart remains bullish as all the indicators stay positive and continue to rise. Price stays above the top band and reach for new high, but the MACD has not able to erase off the bearish divergence. Of course this is something that I am keeping an eye on. The ADX also continues to rise though it is still below the 20's level. When the ADX is low, my attention is on the Stochastic and as it has already entered into the overbought zone, so I would be cautious on a correction soon.

Meanwhile, last weekend attention went back to Spain and Italy as new worries re-emerges.