FKLI -  Hanging Around Without A Decision. -12/2/2013

My previous long position was stopped out when price went below prior day low, but I did not engage any new sell position as there was no new signal. Instead price went back up again above the prior day high on last Monday. As the Stochastic remains positive, so I bought in again. I still maintain my stop at the prior day low as there is little trend in this market.

The Stochastic remains positive and continues to rise and it is now above its 50's signal line. The MACD has also turned positive and it manages to hold above the zero signal line. The DMI stays positive, so with all these, the bull is having a slightly upper hand over the bear. Of course it is the flat ADX at 16's that is not been encouraging. This is still a listless market, so I have drawn out 2 horizontal lines to mark out its recent range. Price would has to break above or below the range in order for me to sit up. Overall it is about keeping a tight stop when trading this market now.

 
The weekly chart is still telling me it is a listless market as the Stochastic and MACD are contradicting each other. The MACD is negative while the Stochastic is positive but it is already inside the overbought zone. Since the ADX is flat and low, I would pay attention to any new sell signal from it. Price has gone tested the top band but it was not able to close above it, so there was no new signal to buy. The DMI remains positive but the ADX stays flat at 17's for the second week. Unless price can go above 1828,  there is no new trend in the market.


The monthly chart's MACD and  Stochastic are up. Price manages to stay above the top band, so the bull is not in immediate danger. But with the flat and low  ADX at 17's, it is also not going anywhere else except range bounding. And since the ADX is low, I would pay a lot of attention to the Stochastic for a possible new sell signal. There are already divergence formed at the Stochastic and MACD, so I would also take caution as there might be a big bad bear hiding behind the bush.

Again both the daily ,weekly  and even the monthly chart are confirming a listless market, so either keep away from trading or trade the intraday chart or if you wants to trade end of day chart, then please keep your stop very tight. Though there is no major bearish formation in the daily and weekly chart yet, I also cannot say there is anything to make me feel bullish.