FKLI - Listless For Now But Is There A Retracement Around The Corner?- 1/19/2015

 

The market has not been going anywhere for the past one week. Price has been hugging along the middle band and got stuck between the the top and middle band. The Bollinger Band has begun to tighten up. With the ADX gone flat at 17's, all these are confirming a listless market mode. So I would suggest desisting from taking any new position until we see price breaks up or down the top/bottom band.
The Stochastic , though remains positive, is pointing downward again. And if it goes negative and below the 50's signal line, I would consider a new short trade. The MACD stays positive and continue to rise, but it is still below the zero signal line. The DMI stays negative. 


 

The weekly chart changes a bit as the Stochastic has crossed up and turned positive, but by itself it would mean very little. Price continues to stay below the bottom band. I would want to pay attention to the bottom band resistance of 1749 by the coming week. If price can go above that level, then it may trigger a new initial buy signal. Both the MACD and DMI stay negative . But as mentioned here for the past 2 weeks, the DMI has been at its extremity, so I expect some retracement could be coming next. At present since the ADX is still rising, so the current bear cycle remains intact. But since Stochastic is contradicting the MACD, so we cannot expect any strong moves.
I have been warning that the crude oil may be staging a technical rebound soon as its chart's indicators are in their extremities. So I would NOT be surprised that FKLI piggy backs on them. So if you are still holding shorts positions, keep the stops tight.