Defensive Bulls Can Hold Off Assaulting Bears
For the week ended on Friday, the 8th of April, 2011, the FKLI gained a total of 4.5 points with a weekly high of 1562.0 and a weekly low of 1542.5 points. Total market volume traded was a significantly lower 25,573 contracts against 39.907 of previous week.
It ain't gonna be a big surprise if the FKLI retest the weekly lows support again. 
FKLI Charts (Daily & Weekly): For the past week, the FKLI was basically trading between the 1542.5 low and 1562.0 high of today (Friday) >>> a 19.5 points range., with the immediate resistance at the all time high 1579.5 with support seen at the 61.8% Fibonacci Retracement 1537.0. The FKLI has yet to breakout between highs or lows of year 2011 as shown in the daily & weekly charts. Meanwhile, as shown in the FKLI Weekly Chart, the mid-term 14, 21, 31 EMA is still serving as the dynamic support to the FKLI, thus the mid-term technical outlook remains positive.
"As a precautionary measure, FKLI traders are advised to note the appearance of a Doji Star in this week's chart closing candle. The "Evening Star" is like the "Hanging Man" candle that appears on the weekday of 14th June.
Both the Evening Star & Hanging Man are negative candles."
Both the Evening Star & Hanging Man are negative candles."
Volume: As indicated in the weekly chart, total market volume have fallen quite substantially, to be exact a drop of 14.334 contracts, which suggests that the market participation is faltering with buyers unwilling to commit with follow through LONG positions. Obviously more buyers volume would benefit the LONG market sentiment and vice-versa.
Bollinger Bands: With the FKLI above the Bollinger Middle Band (not shown in charts), the immediate technical outlook for the FKLI is on the positive side. However, the Bollinger Bands is still not flashing a clear signal, thus the FKLI is likely to remain in a consolidation / sideway mode with some imminent profit takings along the way. until the Bollinger Bands starts to begin expanding again. And if FKLI prices remains above the Bollinger Middle Band during re-expansion, the outlook for the FKLI will be positive looking forward.
RSI: The FKLI Weekly RSI remains above 69% (above average strength), in the mid term neutral / bullish territory, and this suggests that the Weekly FKLI's mid term strength is still intact.
The Daily RSI 14 days period reads 67.9, slightly below the bullish 70% zone.
The Weekly RSI, however, have risen above the 50% now sitting pretty at 62.6% which is an indication of weekly momentum improvement. The Weekly RSI have to rise above the 70% in order to gain bullish status.
Stochastic: The Daily Chart Stochastic pullback today is an indication of distributions cum profit takings, but with the daily 14 period Stoch at 91.1 %, the FKLI can still be viewed cautiously a little top heavy. The Stoch is, however, still in the short term bullish territory, which suggests that the short term movement of the FKLI is still positive until the numbers dip below 70%. Do not be overly surprised by a little extra profit takings at this 90% + level on a day to day basis.
With the FKLI currently in profit taking / sideway trading mode, technical outlook remains positive. The FKLI is expected to test the 1579.5 record high, and if the bulls can commit more LONGs the gradually improving volume will slowly but surely entice buyers sentiment which is likely to enhance the FKLI bullishness.
Week on week, the FKLI managed to eke out a mere 4.5 points gain hence the Doji Star formation in the Weekly Chart. The measly gains is less problematic than the positioning of the Evening Star which when appearing near the highs of a trend, almost always, threatens to make a reversal like what the Hanging Man candle did in Mid-January Weekly Chart.
On a brighter note, no formation is invincible and if the bulls can regroup for another assault at the 1579.5 top, the Evening Star can be neutralized. Trend wise, it still remains a northern doji.
Recommendation
BUY ON WEAKNESS / Flurry SellHAPPY TRADING
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