FKLI - Market Going Sideway ? - 8/25/2014


My stop was hit on last Thursday when price went below the prior day low. On the following price went down further and managed to hold above the middle band. So there is no new sell signal yet.
As at last Friday, the MACD ha begun to dip its direction but it remains positive. The Stochastic is still rising. The DMI stays negative and the D- has risen a bit but the ADX continues to fall and it is now at 20's. This could mean this market may be going into a listless market soon.

Since the recent high of 1875 failed to go higher than the last high of 1883.50 (30/7), so it would be interesting to see this is becoming a lower highs and lower lows situation.


 
At the weekly chart, though price went back up a bit but the indicators have not flash any complimentary signals. The MACD is till falling and its gap remains vast. The faster reacting Stochastic is also not reacting to the price revision as it is still falling. The DMI stays negative with the D+ hooking up some, but as the D+ is also below 20's level, I would not pay much attention to it yet. The ADX stays flat at 16's, this seems to confirming the falling ADX at the daily chart. This begins to look like a new listless market to me. If price is go below last week's low of 1855, it should flash a new sell signal.

Though the market may look like it is going into a sideway mode, the big picture  remains that of a big bear is looming around the corner.