FKLI - Market Undecided - 8/6/2012

 


 
Prices crept inside the top and bottom bands which neither offer new trading signal. I closed off the short trade on last Tuesday when price went above the prior day high. The Stochastic is positive and rising but the MACD is negative and falling. The ADX has now dropped below its 20's signal line- all these 3 are confirming a listless market. Even the DMI has now fallen below the 20's, this is one of those rare classical sign confirming a listless market.

 

The weekly chart Stochastic turns back up again and the MACD remains positive with prices staying above the upper band. Hence the bears are still not getting an upper hand yet. The ADX remains flat by which it means there is no trend in this market. With the ADX below 20's, I would continue to watch the Stochastic for a new sell signal.

While Malaysian market players are waiting for a confirmation of the next election date before they "decide" what to do , the same can be said on the international scene where they are also "waiting" for some reassuring news coming out from EU. Maybe that is why we are looking at a sideway forex markets.