FKLI - Has The Pains Finally Arrived ? -12/23/2013

 

If you have taken profit earlier, then last Tuesday there was another new buy signal when price went above the prior day high. Then the position was closed off on last Friday when price went below the prior day low.

I would sell on the coming week when if price goes lower than last Friday's low of 1831.00. The Stochastic is already negative and about to cross down its 80's signal line. The MACD remains positive but it looks like it is going to turn negative soon. The DMI is also remaining positive with the ADX turning flat. The flat ADX may be telling us the prior trend has already ended. 


 
The most significant piece of information shown out of the weekly chart should be the long upper shadow Japanese Candlestick which is very bearish when it occurs at the top rank of the market prices. Whatever happens in the coming week should be monitored closely as this may be the beginning of an end. The Stochastic is inside the overbought zone, any crossing down below the 80's signal line should be worrisome for the bulls. The MACD remains positive but does not look too healthy. It looks like it is about to form another bearish divergence.  The DMI also remains positive. The ADX has begun to rise, as it may be signaling the beginning of a new cycle.

I have not been too supportive of bullish market scenario for sometime now. I think the market should have a substantial correction as there is nothing too overly bullish about the country's economy. I think whatever the government from the Dr. Mahathir to Najib administration have been doing to "strengthen" the economy has been nothing as drinking poison to quench the thirst. We are going to "die", it is merely delaying the coming of pains. But one thing for sure, it will come. I think with the Ringgit chart showing, the pain may has arrived.