FKLI - Market Has Not Made Up Its Mind Yet - 7/7/2014

 


A new sell signal came along on last Monday when price went below the top band with the Stochastic crossing down its 80's signal line. And the signal was made good on the next day when price went below the signal day low. But the trade quickly went sour as price went back above the top band on Wednesday and hit my stop. There is no new buy signal after that. Though price went and stayed above the top band but the Stochastic has failed to compliment. By last Friday price has again came back below the top band.

The MACD remains positive but seems to getting ready to cross down again. The Stochastic stays negative. The DMI is still positive with the ADX rising. But since it is still below the 20's signal line, I would just keep an eye on it . Until price can break above the 1897 resistance convincingly , I would not get too excited about the next buy signal.

Both the MACD and Stochastic has formed another new negative divergence.

 
The weekly chart has not changed much from that of the previous week. The MACD, Stochastic and DMI remain positive. The Stochastic is inside the overbought zone and since the ADX is at a lowly 17's level, so I would continue to place greater weight on the Stochastic. The Japanese Candlestick is another small body candlestick which usually mean a market indecision. So I would watch out for a possible reversal.