FKLI - Bear May Be Getting Ready To Pound - 6/16/2014

 
Another new buy signal came along on last Tuesday as price pounded back up and closed above the top band with the Stochastic turning positive again. And it even cleared my filter by going higher than the signal day high. By following the trading plan, I went in and bought again and watch this trade most probably will ended up as another dud trade. Price actually went below the top band on last Friday so I am going to tighten my stop to prior day low. Of course this is frustrating as the previous few trades have been unprofitable, but this is the kind of things that I have been expecting with the lowly and flat ADX. It has been at 10's recently. 

The MACD, DMI and Stochastic are all positive. The Stochastic is moving into the overbought zone again, so I would have to watch that one. Price has formed imperfect double tops with the MACD forming another bearish divergence again. So here is another dark warning again may crash soon. The tightening Bollinger Band is adding to that reading.


 

The current weekly Japanese Candlestick failed to confirm the previous Engulfing Bear candlestick as price continues to stay above the top band. All the 3 indicators stay positive. The Stochastic stays overbought and the negative divergence stays intact at the MACD. The ADX continues to stay flat and at 16's, so this is still a listless market.

Both the daily and weekly ADX is still telling me that this is a "dead" market. But as both the daily and weekly Stochastic are in the overbought zone and both chart's negative divergence is still there, so I would continue to try to make friend with the bear. The daily chart's tightening Bollinger Band is warning us that a violent move may be coming soon. So stay alert.