FKLI - Dead For Now But It Will Go Violent Soon - 6/10/2013

 

The market did not go much further down for the past week and now has kept itself within the confinement of the top and bottom band. The flat ADX and contradicting indicators are confirming this listless price movements.

An very interesting development on the chart now would be the increasing tightening Bollinger Band which usually predicts violent moves ahead. But it does not foretell which direction would that be, so I would keep an keen eye on the indicators. As at last Friday, the Stochastic has turned back to negative which is in line with the already negative MACD. So with this, you should pay more attention to the short side. Meanwhile I maintain my stop at the top band plus 2 points.

Since the DMI remains positive, I cannot say that the bears have gain control of the market yet.

 
The weekly chart remains contradicting as the Stochastic stays negative but MACD is positive and rising. The MACD is also been complimented by the rising ADX . But we are still unable to see a new trend coming in. The Japanese Candlesticks have been lining up like a parade for the past 4 weeks with small bodies. But since they are above the top band, though I would still call the weekly chart as a listless market, But I would be careful as the bulls might just burst down the door.

With both the daily and weekly chart displaying a listless market, I would be very careful as either the bull or the bear may just suddenly gain an upper hand and kick the other party in the face. This is especially so with the appearance of the tightening Bollinger Band which is a textbook case of explosive moves ahead.