FKLI - Market Entering Festive Holiday Mode ? - 12/24/2012

 

 Last Tuesday I bought in again when price broke its recent high of 1657.50 and closed off the position on Thursday when price went below the prior day low. This trade only yield a smallish profit. I am take extra precuation as the Stochastic is now inside the overbought zone and there is a resistance at 1678 ahead. As from onwards I would trade intraday chart buy signals. You would want to watch closely for a new sell signal when if the Stochastic crosses down its 80's signal line or price closes below the top band.  Another item to watch out will be the ADX which may be crossing above the DMI. I view that as the ultimate overbought signal.

 

 The weekly chart's bullish side of the story will be the Japanese Candlestick has closed above the top band which by itself is already a very bullish sign. This is also been complimented by the Stochastic and DMI which have just crossed up. The MACD is still negative but is trying to make a turnaround. But price will need to clear its recent high of 1678 and I need to see the ADX turnaround as it is still falling. It is now at 12's which is not offering any confirmation to a new trend.

As the coming week will be a short trading week, there may not be any major movement. And I do not subscribe the America's fiscal cliff causing havoc in the international markets for the simple reason that both party is merely putting up a rhetoric. American politicians, unlike those in Malaysia, are not as idiotic as they look.