FKLI - Maybe Some More Upside To Come ? - 12/17/2012

 

We have got a breakout above the top band which is confirming a bullish move. The falling ADX above the DMI further confirm that the prior bear cycle has ended. Now we have a positive  MACD, DMI and Stochastic with MACD crossing above its zero signal line which is adding extra bullishness into this move.

My stop was hit last Friday when price went below prior day's low. There is no immediate sell signal as yet , instead I would go back into long positions when price break above the immediate high of 1657.50.



At the weekly chart, the single most significant item would be the Japanese Candlestick which closed above both the bottom and middle band and went tested the top band all in one go. But all the other indicators are not able to compliment this move but merely trying to make a turnaround. The coming week is important as I need to see these indicators turning positive in order to compliment the price move. At least we are seeing the ADX started falling which is either telling us the prior down move has stopped. I wish to remind the readers that the prior much discussed bearish divergence is still intact. For the moment, I merely take the upward movement at the daily chart as a technical rebound inside a major bear cycle. I had also warned of this "refuse to die" behaviour which often happen in Malaysia stock market.

If we can see a close above 1659 in the coming week , then we should see further upside.