FKLI - Sideway But Watch The Support - 6/3/2013

After the current sell signal triggered last week, the market has not gone anywhere but drift sideway. This is seen by the flat ADX. The Stochastic and MACD continue to fall and stay negative but the DMI remains positive. Watch the middle band which is a 20 periods moving average for support, if price breaks below that level, it should bring more powerful sellers.

I am placing my stop at the top band plus 2 points.

 
The weekly chart is similar to that of last week's. The Stochastic is negative and falling but the MACD remains positive and it is still rising. The DMI also remains positive with the ADX continues to rise. As always, the contradicting Stochastic and MACD is telling us that the market is caught in a sideway mode. But since price is above the top band and the ADX is still rising, I would take caution to the possibility that the bulls may flex their muscle next. The white body Japanese Candlestick is also favouring the bulls.

As there is no new major warnings across the border, we would just trade the daily chart as with each new signal it brings. And of course, remember to place a stop for every new trade.