FKLI - Crude Oil Bull Is Flexing Muscle But We Are Not - 2/9/2015

Price broke up again last week but it cannot secure a confirmation from the Stochastic. Price stays above the top band while the Stochastic continues to fall below its 80's level. The MACD stays positive and rising. As at last Friday, we are having a pair of contradicting indicators. Together with the ADX staying flat at 20's, I would call this another listless market.

I would only buy again if price can break above 1818 as this is the current resistance. Even if it can break up above that level, I would still be placing in a new buy trade with utmost suspicion. So I would keep my stop tight. The 1818 level seems to have formed a smallish double tops, so be very careful on any new buys over the sells.

 

The weekly chart basically says nothing new. Both the Stochastic and MACD remain positive and continue to rise. The Stochastic is about to cross above its 50's level which is usually a more bullish sign. The MACD is still relatively "far" from its zero signal line, so I would not pay too much attention to it yet. Price managed to close above the previous week's close but is unable to close above its high, so again, this would mean a little. The DMI stays negative with both the D- and D+ falling. This means both the sellers and buyers are not too enthusiastic about banging the market at this moment. The ADX continues to fall, so with these 2 readings , I would still say the market lacks a direction.

Unless the weekly Japanese Candlestick can close back above the top band which would mean the bull is back in control. Otherwise the game plan is still to concentrate on any new sell signal over the buy. Crude oil's current revival may bring some comfort to us, but it still does not change our government's long addicted bad financial habits of splashing tomorrow money today.