FKLI - Are The Bears Getting Ready To Pound ?-11/12/2012

 

The market continues to drift lower below the bottom band. The Stochastic is falling near to its 20 level and the MACD is now breaking below its zero signal line, with these 2 , we could see more intense selling coming forth soon.  The fast rising ADX is also confirming the current trend. But I would like to see a further confirmation of this trend with the ADX crossing above its 20's signal line.

Last week I mentioned the bearish divergence at the MACD has been erased, but I missed out on the bearish divergence at the Stochastic. And that is something that should not be ignored. Place new stop at 1647.

The weekly chart has now turned bearish with the indicators in agreement. The MACD is negative and continues to fall. The Stochastic is crossing down its 80's signal line which is a sell signal on its own. Both these 2 indicators have formed bearish divergence with the current hooking down movement. Another sell signal is from the price action which has closed below the middle band. Another item to watch out now is the ADX which has stopped falling. This could be signaling for a  beginning of a new trend. The bottom band could be the last line of 'defense", if price is to close below the band, then it is all systems go for a sell, sell, sell.
There have been some talks that hot money may leave Malaysia to go back to America. And that kind of talks is showing up at the Ringgit chart. I kind of think that may tie up with the FKLI chart's bearishness.