FKLI -  Selling AroundThe Corner ? - 8/20/2012

The market tried to make another go and broke up the upper band on last Monday and did a new high. But again it fizzled out soon after that one day action. We  could not really expect much because the long holiday coming on in the coming week. 

Both the MACD and Stochastic have gone negative and started to turn down. Price closed below the upper band, all these are confirming a new sell signal. When if the Stochastic crosses down its 80's level, it would add more weight on the sell side of the story. Place stop at 1655. I am paying more attention to the new sell signal as prices had done a new high but MACD did not. Thus forming a bearish divergence. As the weekly chart is already in the overbought zone, so a new sell signal at the daily chart should be treated with greater respect.


 
The weekly chart Stochastic stays inside the overbought zone while MACD and DMI remain positive. The bull seems to gathering some help from the ADX which has begun to rise. But since it is still below the 20's level, its momentum is in doubt. I continue to monitor the upper band as its support.

As the coming week will be a short one, maybe the real action will only come forth by the following week.