FKLI - Is A Top In ? Or Will Struggling Bull Fights On ? - 2/24/2014

Another new buy signal came along on last Monday as price went above recent high of 1827.50 as it is complimented by a positive MACD and Stochastic. But price hardly go far after that. Only on last Friday when price suddenly gapped up but again failed to hold on to the massive gain but closed back low which ended with a moderate 9.5 points gain. Take note that the Japanese Candlestick is now a big black body candlestick. This is also flashing another sign of subtle warning as it went up to test the 1841 fractal high resistance level but failed and came back down. So unless in the coming week price can manage to close above that level, I would think this could be the end of this smallish reversal cycle.

The Stochastic is obviously overbought at 87's as the ADX is below 20's. The MACD and DMI remain positive and rising. The ADX has begun to rise reacting to the Friday's spike. So we would have to watch how it goes the next few days in order to determine whether the continuation of the reversal or this is merely another false break.

I would place my stop at the prior day low from now onward.

 
The weekly chart Japanese Candlestick did something similar of that of the day chart. It went up to test the top band but failed to close above it. Meanwhile both the Stochastic and MACD remain negative but the DMI stays positive. The ADX remains flat at 18's again, so there is no new trend to talk about here.

I remain staying on my toes watching the bearish divergences in the chart. My current trading thinking is that to take new sell signals with more gusto and with new buy signal with less conviction.