Friday, November 23, 2012

FKLI - Reversal is Imminent (Nov 23)

Following my previous post on FKLI, we close the week without any strong reversal signal. 
So, 尽信书不如无书, those who trust the brokers' reports too much might be suffering right now. :p

Below are my charts as of today's close.

FKLI Nov'12 Spot Month Contract (Nov 23 close)
I was wondering why the volume is not contributing its part to signal the coming reversal on the FKLI spot month chart. 
I thought, since when Malaysian celebrates Thanksgiving so heavily that the volume become so pathetic on the index futures??

Then, it strikes me when I check on the Dec'12 contract chart, all the volume has been running to the Dec'12, apparently!! 
We can see climbing volume bars on the Dec'12 chart, with today's volume the highest (almost 2x its 5d average). That's much more promising than the bleak picture on the spot month chart.

However, I'll wait for the confirmation on Monday to make a LONG entry. 
No shame to double- or, triple-confirm, as this is a heck of a looooooong & most persistent downtrend I have ever seen on the FKLI, a whole string of REDs for three weeks.

I'll be looking for strong reversal pattern on Monday/Tuesday, something like a hammer, dragonfly doji, bullish engufling, morning star.....Any one of those will be most welcomed, together with a highest volume bar.

FKLI Dec'12 Contract (Nov 23 Close)

For those who are not familiar with candlestick patterns, I highly recommend this cute little site called BabyPips.com, where they explain the story behind each popular candlestick pattern/formation, so that you can quickly pick up the underlying meaning in each of them.

Do be diligent, & start following their babypips school lessons, all the way from PreSchool to Graduation!

Alrighty! Happy Hunting & be prepared for the most lucrative trading month of December!
Time for a Friday night movie!! ye@h!! :)

Related Posts Plugin for WordPress, Blogger...

Books for Traders

Google+ Followers

Followers