FKLI - Will There Be A Small Rebound ?- 2/11/2013

 

Last Monday price went up but failed to take out my stop at the bottom band plus 2 points. On the following I adjusted the stop to Monday's high plus 1/2 points. But the market went back down below the bottom band again on the next few days, so I readjust again my stop to the bottom band plus.

The Stochastic has turned negative again while the MACD and DMI stay negative and the ADX begins to rise again. So all these may be  pointing to another round of selling. But 1600 seems to be providing a strong support where it has been tested 3 times without breaking. So I am beginning to look at the possibility that the market may stage a technical rebound from here.



 The weekly indicators continue to fall and price finally closed below the bottom band which is a really nasty confirmation of the big bear. There are 2 items to watch out for here. One is the Stochastic is about to cross down its 50's signal line. The other is the MACD is also fast approaching its zero signal line. Both these are a more confirming boundary dividing the bull/bear zone. Though the ADX is still at 13/14's level, it has begun to rise which may be indicating the beginning of a new trend.

The weekly chart is pointing at a all go for selling while the daily chart hints for a possible rebound. But as most of the traders would not be back for work yet, so I think the real action may come later.